Question

TN State Tax on Interest Income

Forum|Forum|6 years ago
March 13, 2020
2 replies
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Turbo Tax won't let me adjust the amount of interest income that is non taxable in TN. It asks if it is all nontaxble. I select no so that I can make an adjustment to the amount from the federal return, but it won't let me input anything.

ReginaM

There are two screens that you will need to complete to capture this interest correctly,

The first place is in your TurboTax while entering your Federal data, here is how:

While in your Tax Home,
Select Search from the top right side of your screen,
Enter 1099-Int,
Select Jump to 1099-Int,
Follow the On-Screen Prompts until you get to this screen, and select Tennessee nontaxable interest.

Next, go into your State of Tennessee by selecting State from the left hand side menu,

follow through the on-screen prompts until you get to this screen:

Enter the non-taxable adjustment here.

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L

LindaTNAuthor

Thanks, but Turbo Tax won't let me open the line line item that says "Enter any non-taxable adjustments " There is already one adjustment in the box from my 1099-INT box 11 bond premium, but it won't let me enter any more adjustments to the state tax amount.

ReginaM

TurboTax will not allow you to enter data in Tennessee, unless you have first completed this step in your TurboTax while entering your Federal data, here is how:

While in your Tax Home,
Select Search from the top right side of your screen,
Enter 1099-Int,
Select Jump to 1099-Int,
Follow the On-Screen Prompts until you get to this screen, and select Tennessee nontaxable interest.

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L

LindaTNAuthor

I have chosen the box marked "my state doesn't tax all of this interest", but it only allows me to select a state (Tennessee), there is nothing that says"Tennessee nontaxable interest. taxable to federal"

AmyC

Employee

If you only see TN as an option, then you are on the tax exempt interest screen asking which states. In that case, you already filled in that you had the tax exempt interest when you were inputting the form.

I think your interest is not tax exempt or you have another kind. What boxes do you have marked on your 1099-int?

Different boxes give different choices.