Virginia tax on US Saving Bonds

Forum|Forum|6 years ago
February 6, 2020
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Virginia exempts interest on US Savings Bonds Turbo Tax does not so how to take that exemption Is it under the subtractions to federal income?

BillM223

When you enter the 1099-INT into TurboTax on the federal return, there is a box that reads "Box 3 - Interest on U.S. Savings Bonds and Treas. obligations".

Any amount put in here is added to "Virginia Subtractions" on the VA return, so the interest on U.S. Savings Bonds is automatically removed from VA taxable income.

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hickory248

After submitting my Virginia tax return, I noticed that you added the amount for US savings bonds (Additions) and also subtracted the SAME amount (Subtractions). Since the amount was added on the federal taxes previously, it should NOT have been added to the state form.

BillM223

In my test, US Savings Bonds interest appears only as a Subtraction on Schedule ADJ (line 4).

Can you tell me on what line this same interest appears on Schedule ADJ as an addition?

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Yatnola

I’m having a problem with this. The exempt box is not active on my federal return. How do I put the savings bond number into it?

AnnetteB6

Please clarify what you are trying to do with your savings bond interest and which state return you are filing. With more details, someone can provide you with a more complete answer.

Only certain states do not tax US savings bond interest. Those states are listed in the Federal return after you have entered the interest income you received. If your state is not on that list, then you may need to add the interest income to your state return, not subtract it.

@Yatnola

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