For the earnings from Treasury Direct, I selected box 3 for the tax return. I noted that there was an increase on California State Tax. Should it be exempted?

[Katie-P]

Hi @js4607,

Your California income taxes should not have increased after you entered the 1099-INT with an amount populated in Box 3 for "Savings bonds and treasury interest". I tested this out in a tax return, and my CA taxes did not go up when I entered $10k in Box 3.

I suggest that you try deleting the form and re-entering it. 

Here is an article on how to delete a form if you are using TurboTax Online: How do I view and delete forms in TurboTax Online? 

If you are using TurboTax Desktop, you can just navigate to the form and click Delete next to it.

I hope this helps! I'll keep eyes on your post in case you have any follow-up questions, but again, your CA income taxes should not be going up.