Utah State I-bond interest was taxed

If you've entered your I-Bond information correctly in the federal portion of TurboTax Online, it won't be taxed on your Utah return.  The I-Bond interest included on your federal return will be subtracted in Part 2 - Subtractions from Income on Utah's Form TC40-A, Income Tax Supplemental Schedule, and carried over to line 8 of Form TC-40, Utah Individual Income Tax Return. 

To review your entry in the federal section: 

1. Open TurboTax Online
2. Select  Tax Home in the left pane
3. Select the dropdown to the right of Wages & Income
4. Select  Pick up where you left off, Review/Edit or the edit pencil
5. On the Great! We've got your income info page, select Add/Edit to the right of your I-Bond information
6. On the Let’s finish pulling in your investment income page, select the dropdown to the right of your I-Bond information, then select Edit
7. On the Now, let's review your 1099-INT page, make sure that your I-Bond information is entered in Box 3 - Interest on U.S. Savings Bonds and Treas. obligations, then select Continue
8. Answer appropriately on the following screens

If the TurboTax Online navigation displayed above doesn't look like what you're seeing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.

If you want to verify that the amount isn't affecting your Utah tax, make a note of your Federal refund/tax due and Utah refund/tax due in the top left corner of TurboTax Online.  Then, remove your I-Bond income.  Your federal refund should increase or tax should decrease, but your Utah amount shouldn't change.  Don't forget to re-enter your I-Bond income.