I took EE savings bonds to Bank of America last year to cash in; interest was about $10,800; received a 1099-INT from BOA, which states box 3 interest on U.S. Savings bonds and treas. obligations and then the amount i put this in turbotax

[MargaretL · Accepted solution]

The IRS has a copy of the 1099-INT and will be looking for it on your tax return.

If you have already reported the EE savings bonds on your tax return- and you have done it correctly (reported it as if 1099-int is received) and your return has been accepted - you are fine.  If you have reported in in another way, the IRS may issue a correspondence in the summer asking you for additional information or to make some adjustment on the tax return.  

If you prefer to amend just to reflect the bonds correctly - You would report Form 1099-INT form BOA and delete your own entry: 

1. Federal Taxes
2. Wages & Income
3. Interest & Dividends, select Interest on 1099-INT - be sure to check the box My form has info in more than just box 1

Amending instructions:

https://ttlc.intuit.com/replies/3288565

[tommy20]

I cash a us ee savings bond last year at Wells Fargo and they did not send me a 1099, but they gave me a receipt. How do I report this interest? This bond is state exempt and I don't want Turbotax  showing it as income on my state return.

[ReneeM7122]

You are correct, interest income on municipal bonds are not taxable to the IRS, and not taxable to the state as long as the bond is from your home state.

To enter your non-taxable interest income from municipal bonds please follow these steps:

1. Click on Federal > Wages & Income. 
2. Scroll down to the Interest and Dividends section and click on the Start/Revisit box next to Interest on 1099-INT. 
3. Answer Yes to Did you receive any interest income?
4. On the next screen, click on I'll type it in myself.
5. On the next screen, Let's get your 1099-INT or brokerage statement details, mark the box My form has info in more than just box 1 (this is uncommon).  
6. Enter tax-exempt interest in Box 8.

To add to the answer, if you enter tax exempt interest in Box 8 of 1099-INT during easy-step process, you then hit continue.  it confirms the payors EIN.  then hit continue again.

A menu will appear about uncommon situations.  check the box our state doesn't tax all of this interest.  You can then enter what state the muni interest came from.  If you enter your state, this should flow thru to state tax return and being excluded interest on Sch. B of the state return.

@tommy20