Have others had a problem with the Virginia return where it is miscalculating taxes because it is inappropriately adding tax exempt interest on EE savings bond to income?

Forum|Forum|1 year ago
January 22, 2025
3 replies
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Turbo tax handled this correctly for my 2023 return, but the software is NOT handling this correctly for my 2024 return. There is an error in the software. Who can help with this???

baldietax

Not seen an issue (using desktop premier for Mac), 1099-INT Box 3 is not adding to VA tax. Not sure what to suggest other than to confirm on Fed return in Forms view under Schedule B in the 1099 that it's reflected in Box 3.

ch3multilotAuthor

I just verified that I entered the interest on the savings bonds in box 3 as suggested, however the software is still adding it to income (which is incorrect) as well as deducting it from income (which is correct) on my Virginia return. So it seems that the software is not working correctly.

baldietax

pls can you clarify when you say "adding to income (which is incorrect)" which line on Form 760 are you referring to. It should be part of your Federal income on Form 760 Line 1 and then subtracted on Line 7.

GetaFix4Tax

I am experiencing this same issue. Please advise exactly how you fixed it.

My US EE savings bond interest was taxable at federal level since I did not use if for education purposes. On VA return, it is added to my income (error) on line 2. Then deducted on line 7. Net result, I am taxed at the VA level on this income even though it is supposed to be nontaxable in VA.

BrittanyS

Have you tried deleting and adding the 1099 info back? Are you using TurboTax Desktop or Online?

@GetaFix4Tax

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Mar4599

I'm having a similar problem with Virginia. I put the VA vs. non-VA portion of tax exempt interest income in the Federal input but it is putting a whole different number on the Virginia return as an addition. I'm not able to change it on the Virginia input. Help!

baldietax

you need to provide more details for anyone to help...

are you talking about 1099-INT Box 8 or 1099-DIV Box 12?

What do you mean by "whole other number" - is it close but off by a small adjustment, or just totally missing the 1099 amount?

If 1099-INT do you have any premium or accrued interest adjustments?

If 1099-DIV double-check the state assignments in the interview screens following the screen with the box amounts, are split correctly, and the 1099-DIV is not flagged for "needs review" when you look at the list of your 1099s.

If you are seeing strange numbers from a 1099 it's worth trying to re-input as a fresh 1099 especially if imported.