US Treasury Interest

[nothappy23]

why is Turbo Tax  not able to download 1099 int from Treasury Direct?  Caused a mess  and hours wasted.

Treasury interest is not taxed by the State of Michigan and no way to note this .  Your online rep couldn't do it either.

Please let me know if this problem will be fixed for tax year 2024 or just file with paper & pen!

[SteamTrain]

Not likely.

....the Finacial institution has to be willing to create a "Special-formatted" import file. That import file is NOT formatted the same as the 1099-INT you can download separately as a PDF file.  It ahs to be in a  specially-laid-out computer code.

 Thousands of small banks don't "partner" with the software companies to create that special file either.

__________

Not really sure what the problem was for entering the data Manually though.   Customer service reps "Should" have been able to lead you thru it without importing.

It's really simple to just enter it manually as a 1099-INT from the US Treasury, and enter the total interest paid out from them in box 3 of that form...and you're done.  I do it manually every year for my maturing Savings Bonds in my Treasury Direct account...  5 minutes tops.

No reason to file on paper thru the mail...none at all.

[nothapp23]

the US Treasury is not a "small" bank.  The problem is TurboTax not able to identify Treasury Direct interest on my STATE (MI-1040) which is not taxable.  The TurboTax rep couldn't figure out how to identify the income as not taxable.  I believe that T-Bill/Note is not taxed by any State!

I easily downloaded the 1099-int from the US Treasury but the program didn't allow to note as a Subtraction on Michigan Schedule 1 Additions and Subtractions!

Are you stating that you can subtract Treasury income from your State tax form?

[VolvoGirl · Accepted solution]

@nothapp23    How did you enter it on the federal side?
When you enter the 1099-INT you need to enter the interest in Box 3 then it will be automatically excluded from the state return.

To get to box 3. Under the Received from box, you need to check the little box on the left for
….My form has info in more than just box 1 (this is uncommon).