I live in MA and will be filing an MA state return. I received a 1099-INT from Capital One for interest from CDs. After importing, I see the screen, “Do any of these uncommon situations apply?”, with one option, “My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest.” There's then an option for MA, called, "MA Bank". Do I just automatically choose the box for "MA Bank" just because I live in MA and am filing an MA state return? Or do I have to do some kind of research to determine if I should check that box for "MA Bank" (if so, I have no idea!)
Yes, if you were a resident of Massachusetts. most bank interest gets a partial exclusion. There will be a follow-up question in the Massachusetts state section if additional information is needed for the qualification, but Capital One should apply so you should qualify for the exclusion.
Thank you @MaryK4 ! That's what I figured. For the follow up question, none of those options apply to me. And whether I check the "MA Bank" box or not, neither my state or federal return change at all. Should it have an impact?
And what exactly does checking/not checking this box do? What in Turbo Tax is being done in the background if I check the box?
And in general, for any 1099-INT that's from a bank, I should check that box for "MA Bank" just due to the fact that I live in MA and am filing for MA, even if it doesn't impact my return, correct?
The exclusion was repealed for 2024 so it no longer applies, it seems this needs to be updated in TurboTax. It has no effect on your tax return this year. @Nate402