Turbo Tax not listing US Savings Bonds interest on PA Sch SP-2023, Section III; Col A line 2 for total eligibility income. How to fix so tax forgiveness credit is right?

Forum|Forum|2 years ago
February 16, 2024
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Although US Savings Bonds interest (once cashed in - 1099 INT box 3) is not considered PA state taxable income on PA-40. It must be included on PA Schedule SP-2023 Section III line 2 as nontaxable interest for computing tax forgiveness credit. Turbo Tax is not carrying it over.

TurboTax Deluxe Online

DianeW777

It depends. If you did not make an adjustment for the US savings bond interest then you need to do that. See the steps below to adjust your US savings bond interest on your Pennsylvania (PA) tax return.

Review your federal return first to be sure you have the bond interest entered into Box 3, 1099-INT.
Select State taxes in the left menu
Select Your State Returns > Select Continue or Edit the PA return > Continue past Employee Business Expenses, if applicable
On the screen Interest income summary select Edit beside the bank interest > Make sure the interest shows the bond interest separately
If so, the PA Schedule SP should have the appropriate figures on that schedule.
Please confirm and if necessary return here with any comments or questions.