When input interest income from TreasuryDirect, Turbotax didn't list "California" for "Our state doesn't tax all of this interest"

Forum|Forum|2 years ago
January 26, 2024
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I'm trying to input the interest from TreasuryDirect. At the step "Tell us if any of these uncommon situations apply", I select "Our state doesn't tax all of this interest ". But the state list doesn't have "California". Why? I thought no need to pay state tax for the interest income from TreasuryDirect. Is it right?

TurboTax Home & Biz Windows

ThomasM125

Federal bond interest is exempt from taxation in California and all states. Some states tax other types of interest differently than how it is taxed on your federal return and the box you are referring to applies to those states. I believe the 1099-INT form you received has the tax exempt interest listed in box 3, so that is how TurboTax will know not to include it with your California income.

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Izzy67

I'm in New Jersey and have a similar question. Does turbo tax have the option to auto upload the 1099 from treasury direct like other brokerages, or I need to manually input. Because the only info on the 1099-int is the interest accrued from iBonds. How will turbo tax know not to take of state tax?