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in my 2024 tax return savings interest income was factored in federal income but not in New Jersey state income

 
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rjs
Level 15
Level 15

in my 2024 tax return savings interest income was factored in federal income but not in New Jersey state income

What exactly do you mean by "savings interest"? Is it interest from a savings account in a bank or credit union, or are you talking about interest from U.S. savings bonds? Interest from U.S. savings bonds is not taxable by the state.


If it's interest from a savings account, did you get a Form 1099-INT for the interest? Is the interest in box 1 of the 1099-INT? Go back to the screen where you entered the 1099-INT in TurboTax and make sure you entered the interest in box 1, not in box 3.


After you enter the 1099-INT for the interest, the next screen asks "Do any of these uncommon situations apply?" It has checkboxes for two options.

  • I need to adjust the interest reported on my form.
  • My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest.

Did you check the box for either of those options? Don't do that. Just check "None of these apply" or don't check any box.

 

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