I cashed EE bonds and the WF bank listed the state/15 and its ID/16 but did not pay any state taxes. Why will Turbotax not allow the free edition to continue with the $0?

[DianeW777]

Interest income is allowed when using TurboTax Online free. There is no reason to enter any amounts for the state.

The US EE bond interest is not taxable to the state and should have no entry when adding this bond interest. The interest should go be entered in Box 3 of the 1099-INT entry section.  Use the instructions below for entering your interest. See information below about 'simple returns' for TurboTax.

• Where do I enter my 1099-INT?

TurboTax Online: Important Details about Filing Simple Form 1040 Returns (scroll to the bottom of the page to see these details)

If you have a simple Form 1040 return only (no forms or schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit or student loan interest), you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic at the listed price. Roughly 37% of taxpayers are eligible.
 

Examples of situations included in a simple Form 1040 return (assuming no added tax complexity):

• W-2 income
• Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B
• IRS standard deduction
• Earned Income Tax Credit (EITC)
• Child Tax Credit (CTC)
• Student loan interest deduction
• Taxable qualified retirement plan distributions

Examples of situations not included in a simple Form 1040 return:

• Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions
• Unemployment income reported on a 1099-G
• Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers)
• Stock sales (including crypto investments)
• Income from rental property or property sales
• Credits, deductions and income reported on other forms or schedules