Turbo Tax NY IT-201 Form Incorrect

Forum|Forum|2 years ago
April 5, 2024
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There is a problem with the TurboTax 2023 Desktop Deluxe edition for New York. Specifically, when you try to enter the NYS subtraction to federal income for US Savings Bonds (i.e., they're excluded from NYS tax)--the software puts this exclusion in Line 31 of the NYS IT-201 form, instead of the Line 28 of the form, which is specifically for US government bonds. TurboTax also incorrectly generates an NYS IT-225 form--which is not needed for US bonds. The software lets me override the values to put the savings bond interest amount in Line 28--but then says I can't efile with an overidden amount. Frustrating!

rjs

Employee

The interest on U.S. savings bonds should have been reported in box 3 of a Form 1099-INT. You enter the 1099-INT in the federal income section, with the savings bond interest in box 3. Then TurboTax will put it on line 28 of Form IT-201. You don't enter it as a subtraction on the New York return, or make any other entries for it.

On the screen where you enter the 1099-INT in the federal section, check the box that says "My form has info in more than just box 1" in order to enter the amount in box 3.