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Deducting interest earned from US treasury notes on Ohio income tax return

Where and how do I deduct interest earned from US treasury notes for 2023 on my Ohio income tax return? 

There is no mechanism to do it on the Ohio State return on Turbotax Deluxe and so my Ohio total  taxable income  is way overstated. 

Thank you

K

 

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3 Replies

Deducting interest earned from US treasury notes on Ohio income tax return

@tennis5soccer   

 

IF you entered those $$ properly as interest in box 3 of the 1099-INT you entered in the Federal section, then it should be handled automatically in the OH software.

_______________

But I'll ask an Ohio software expert:

@Hal_Al    or does the OH software do it somewhat differently?

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Hal_Al
Level 15

Deducting interest earned from US treasury notes on Ohio income tax return

Q. Does the OH software do it somewhat differently?

A. No. 

 

U.S. Treasury interest must be entered in box 3 at the 1099-INT screen, in the federal section of the program.  When it is entered there, TT will automatically make the deduction on the state return. There is no other way to make the adjustment. 

Be sure that the US Treasury Interest in entered in box 3, at the 1099-INT screen.  When you first see that screen, check the box "my 1099-Int has more than just a box 1", to get access to box 3. 

Deducting interest earned from US treasury notes on Ohio income tax return

@tennis5soccer   

So that's the proper way to do it for individual Bonds/Notes you actually hold.

 

BUT

IF the US obligation $$ are reported by Mutual funds, and not individual bonds you hold....then those $$ are reported in box 1a of a 1099-DIV form...however, box 1a of the -DIV form contains $$ from lots of other stuff too, even stocks.

 

SO, for this situation

When you entered your 1099-DIV form in the federal section, you need to notice that on a page AFTER the main 1099-DIV for, there is a selection box for "A portion of these dividends is U.S. Government interst" 

(i.e. Go back and edit that 1099-DIV form again if you need to do this)

 

You select that box, and then on the next page you enter the $$ amount that YOU calculated came from US Govt bonds in your various Funds......based on the % of the distribution from that fund that the fund publishes.  That should automatically include those $$ amounts as being OH-exempt on the OH forms. Again though... The total $$ in box 1a of the form 1099-DIV can come from various sources, so you have to use your supplemental sheets to determine that exact amount.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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