Extering exempt U.S. Savings Bond interest into Colorado return within Turbo Tax

Forum|Forum|2 years ago
February 3, 2024
1 reply
0 views

TurboTax indicates that interest from U.S. Savings Bonds is exempt from Colorado state income taxes. The only place I see to make this adjustment in Turbo Tax has the heading "Interest and Dividends from Mutual Funds", but this savings bond transaction was executed by a local brick-and-mortar bank. Is this the correct place to make the entry seeking the exemption? Or, has Turbo Tax already made this adjustment for the state filing and I just don't see it?

Another point of concern is that the 1099-INT issued by the bank indicates only that the Type is "BD", and it carries the bank's PAYER'S TIN" like the 1099-INT for my other accounts. Will the Colorado Department of Revenue know that this is interest from U.S. EE Savings Bonds?

Thanks for your insight.

VolvoGirl

Employee

You need to designate that when you enter the 1099 INT on the federal side. The interest should be in box 3. That tells it to subtract it from the state return. What box is the interest in?

PrivateGuyAuthor

Hey VolvoGirl,

Yes, thank you. As you suggested, I was able to return to the 1099 entry and there was indeed a box reading "My form has info in more than just box 1". And, this then does provide a "Box 3 - Savings bonds and treasury int." Great.

Regrettably, my 1099-INT issued by the bank does not have this box 3. Only box 1 has the "Interest income."

Do I need to speak with the bank for a more complete 1099-INT?

Good lead...many thanks!