I bonds and state taxation

[MarilynSc]

I've just done an amended return showing redemption of I Bond interest that was redeemed under my SS number.  I expected my Federal taxes but my state taxes also increased.  The I Bond interest was the only change - why would my state taxes go up on an investment that is supposed to be free from state and local taxes?

[DianeW777]

I agree it should not go up on your state return. My advice would be to print the state return and compare it to your original return to see what changed.  If you find it does involve the US I Bond interest there is no need to amend the state return.

You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

[KrisD15]

True, the interest should not be taxable on your state return, and you should check on that by looking over your returns; however, the tax exempt interest will change your Modified Adjusted Gross Income and that could affect the state return as far as credits and/or deductions. 

Be sure to go through both the federal and state sections after making any changes to one or the other.