virginia tax

Forum|Forum|2 years ago
February 25, 2024
2 replies
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on va return turbo tax asks for us bond income not federally taxed and it wants to add this to my va income. my understanding us gov interest is generally federally taxed but not state taxed so instead of adding it to my adjusted federal gross income it should be subtracted for state taxes i cant find a place for us bond income included in my federal agi but not taxable for virginia

Best answer by AnnetteB6

If you are referring to US savings bonds, the interest earned is taxable on the Federal return and is entered through Form 1099-INT in box 3.

Savings bond interest is not taxable on the Virginia tax return and it is automatically subtracted from the Federal Adjusted Gross Income (the starting point for the Virginia tax return) on line 7 of VA Form 760. Line 7 may also include other adjustments. You do not need to make any entries on your Virginia return to account for US savings bond interest being non-taxable.

The entry in the Virginia return asking for you to enter any bond income not Federally taxed would not apply to US savings bond income.

AnnetteB6Answer

If you are referring to US savings bonds, the interest earned is taxable on the Federal return and is entered through Form 1099-INT in box 3.

The entry in the Virginia return asking for you to enter any bond income not Federally taxed would not apply to US savings bond income.

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Hal_Al

Employee

U.S. Treasury interest must be entered in box 3 at the 1099-INT screen. When it is entered there, TT will automatically make the deduction on the state return. There is no other way to make the adjustment.

Be sure that the US Treasury Interest in entered in box 3, at the 1099-INT screen. When you first see that screen, check the box "my 1099-Int has more than just a box 1", to get access to box 3.