Where do I indicate that interest income from U.S. Government agency bonds from FFCB & FHLB is state exempt?

Forum|Forum|6 years ago
June 5, 2019
3 replies
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Interest income from U.S. Government agency bonds issued by Federal Farm Credit Banks, Federal Home Loan Banks and TVA is exempt from state tax. How do I indicate this on Federal or New York forms?

TurboTax Premier Windows

Best answer by SteamTrain

IF ...if such interest is reported in box 3 of a 1099-INT form.....then you enter that 1099-INT in the Federal section, and anything in box 3 of a 1099-INT will automatically be dealt with by the software on the state tax return.....i.e. removed as taxable income for the state.

But you need to report exactly as shown on the tax forms you received.....see further notes below, about situations where it's been reported in box 1 of a 1099-INT, or box 1a of a 1099-DIV

SteamTrainAnswer

Employee

But you need to report exactly as shown on the tax forms you received.....see further notes below, about situations where it's been reported in box 1 of a 1099-INT, or box 1a of a 1099-DIV

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

SteamTrain

Employee

…..(fixed a typo above)

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

raynicki

It does not show the state of Minnesota as being one of them???

Saml

For Virginia, if federal agency interest is not included on line 3 of Form 1099-INT, then you can subtract this interest during the state turbo-tax interview for the item "other subtractions from federal income" by describing the item as Federal Agency bond interest. This method will probably work for most states that do not tax federal obligations.