U.S. Savings Bonds

Forum|Forum|2 years ago
March 10, 2024
2 replies
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I cashed some U.S. Savings Bonds last year and got my 1099-INT form, which I entered in the federal section. When I start working on my State section it wants me to enter "Expenses Deducted on Federal Return". I am not sure what to enter here.

Mike9241

It would seem expenses related to the US interest that got deducted on the federal return - like early withdrawal penalty. All TurboTax sees in US interest not that it came from savings bonds. It is unlikely you had any expenses with regard to cashing in those savings bonds.

Hal_Al

Employee

States can not tax U.S. Government interest, including Savings bonds. But, you do not enter a deduction for that, in the TurboTax state program. The deduction happens automatically if you entered the savings bond interest in box 3 at the 1099-INT screen.

Be sure that the US Treasury Interest in entered in box 3, at the 1099-INT screen. When you first see that screen, check the box "my 1099-Int has more than just a box 1", to get access to box 3.