I cashed some savings bonds but didn't get a 1099-INT, but am planning to add the interest income as though I did.
If I understand correctly, I shouldn't pay state taxes on this income. How do I exclude it from my state return?
TurboTax (TT) will handle that automatically when you put the interest in box 3 at the 1099-INT screen. TT will put it on the appropriate line on your state's tax form
turbotax reduced the amount of box 3 with no explanation when carrying this amount to Maryland 502 return, via 502SU (subtraction from Income). Adjusted gross income from fed. was less than $150,000 filing joint return. Should be no reduction in interest deduction of Fed. Adj. Income.
I have interest income from treasury bonds (listed in box 3 on 1099-INT). I've entered the amount in box 3 but Turbo Tax didn't exclude this interest from my income on my state return. How do I get it to correct the state return?
I'm filing in Michigan.
I figured out that TurboTax was doing the right thing but it didn't look like it. When I got all the way to the end to review my tax forms before submitting them, the Michigan forms in the packet included a blank Schedule 1 (Additions & Subtractions to Income). I thought that meant that the bond income info wasn't entered properly on the state forms. Then I finally scrolled past the blank Schedule 1 and found a Schedule 1 that was properly filled out. Whew!