The interest on certain federal agency bonds like Federal Farm Credit Bank and Federal Farm Home Loan Bank are taxable for federal but exempt in all states including Georgia per 12 USC 1433 and 12 USC 2023. This is similar to interest in US treasury bonds.
The interest was reported on my brokerage 1099 in box 1 as taxable interest but was not reported in box 3 for government bond interest. As a result, the interest from the bonds is not flowing in Turbotax on to the Georgia return as an adjustment to federal income.
I had seen in other posts that Turbotax asks you about adjustments to federal income state tax return interview. However, the Georgia tax return interview is missing this question in order to make an adjustment on the Georgia tax return for federal agency bond interest.
So I had to manually make an adjustment in "Other Adjustments" onto the Georgia tax form instead and labelled it "Other Government interest". Is this this the correct approach? Can Turbotax add a question for this? I am sure many Turbotax users filing in Georgia (and other states) would be unaware how to do this on their own.
