How to exclude US savings bond or US Treasury bill interest from WI state tax return

[WIsavingsbondexclusion]

The Turbo Tax Premier script does ask if you have US Savings Bond (or Treasury bill/bond) interest, and then whether you are in about 10 different states, when filling in the Fed  tax return (presumably to help get the interest excluded from state taxes.)  For other states, like WI, it says it will query you later when doing the State returns so as to get the US Savings Bond or T-Bill interest excluded from state taxes.   Turbo tax premier version for WI state taxes did not query me for such US Treasury interest .  So, what I did to circumvent this situation:  I added it in during the Turbo Tax premier tax script as a MISC Subtraction from WI tax.  That generated a WI schedule SB (subtract from income) form .  I then went into FORMS at the top of the WI page to edit the WI SB form.  Line 2 on the SB form is specifically for US Savings Bond and Treasury Bill and Bond interest.  I entered my savings bond interest on SB line 2.  I then erased it from the bottom of the SB form under the MISC option I had originally used.  This US interest did carry over onto the main WI state form.   It's sad that Turbo Tax premier did not query users about such US Savings Bond/T-Bill TBond interest in their script to get it excluded from state taxes.   Did anybody see such a query in the turbo tax script? Please indicate where it occurs if you did see such a query. 

[MaryK4]

Can you clarify on which form you entered the interest in the federal section?  I would like to look into this for you.

[Hal_Al · Accepted solution]

Q. How to exclude US savings bond or US Treasury bill interest from WI(or any other) state tax return.

A. In the federal section, enter the  US savings bond or US Treasury  interest at the 1099-INT screen.  When you first open the 1099-INT screen, TT will only present box 1. You need to check the box "My form has info in more than just box 1". Then, enter the interest in box 3. TT will automatically deduct it, on the state return, on the proper line on the state form. 

[WIsavingsbondexclusion]

Two factors for why this confused me and probably others.   The form the treasury sent out to me for  savings bond  interest does not have the typical look of a 1099-INT form.  It only has three columns: recipient,      then 3-interest on U.S. Savings Bonds and Treas. obligations,     then 4-Federal income tax withheld.     It does not have the more normal set of boxes for '1' '2'  '5'   etc.       From a TT perspective... On the TT Interest page, you have to hit " I 'll type it in myself"   .  You are then presented a form to enter interest info.  At the bottom of the TT form is a note:  "My form has info in more than just box 1 (this is uncommon)."       What TT could do to help prevent the confusion would be to expound on the note.   Instead of staying (this is uncommon), say something like: further box entry is needed for investments  such as Savings Bonds, U.S. Treasuries, etc.       I think such an enhanced note will become more important going forward.  Especially considering the popularity of I-savings Bonds and how U.S. treasury bills/notes are finally yielding worthwhile interest rates.   Anyway, Hal_Al did a nice job describing how to resolve state tax exclusion of Savings Bonds within normal TT screens.  but I suggest TT's note that such interest is uncommon should be enhanced to ensure entry of Treasury interest thru normal TT panels is more obvious.    Thanks!