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Returning Member
posted Mar 7, 2023 9:58:56 AM

Why is Pennsylvania not listed in the step by step desktop turbo tax as a state to select for US Savings Bonds exemption? And I do I report it?

How do I report US savings Bonds interest as tax exempt for Pennsylvania?

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2 Replies
Expert Alumni
Mar 7, 2023 11:31:36 AM

TurboTax Expert ErnieS0 says that you can handle this by following the directions below:

 

If you have interest income from federal agency bonds that are exempt from Pennsylvania income tax, make your adjustment on the screen “Interest Income Summary.”

 

  • On “Interest Income Summary” tap Edit
  • On “Adjust Federal Interest Income,” tap Yes
  • On “Adjust Federal Interest Income, enter the Adjustment Amount as a positive number and select Other Adjustment

Returning Member
Mar 9, 2023 2:05:51 PM

I did that but if Pennsylvania was included in the drop down on the interest reporting section of the step by step, I would not have to do an adjustment.  Turbo Tax needs to correct this situation.