Feature suggestion - allow gov't obligation adjustments to 1099-INT input
I had interest for a US gov't obligation that wasn't US Treasury related. It was included in Box 1 of my 1099-INT. This interest is state tax deductible, but there was no way on either the 1099-INT input screen or the state tax adjustments screen to designate it as so.
Note that the 1099-DIV input screen DOES have a question and subsequent amount input to accommodate this situation for dividends.
Please add this capability, or a generic "adjustment" capability, to the 1099-INT or state adjustments screen so this situation can be accommodated.
Comments
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This is how TurboTax handles it:
When you complete the state interview in TurboTax, you are asked a series of questions about any items that need to be treated differently or allocated among different states. In the California interview, on the page "Here's the income that California handles differently", under Investments, select Start or Revisit next to "Interest and Dividends Adjustment".
On the next page, several items are listed. If none of those apply, select Continue.
Another screen appears (see screenshot) that allows you to enter any interest item that needs to be added to or subtracted from California income. You can enter "Farm Credit Bank" in the Description and the amount under Subtraction.
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For the TY2025 California return information, I seem to be able to enter this data
- CA Uncommon Tax Law Differences - answer yes.
- Last item under Subtractions from Income
- Any other amount you need to subtract from your California income: _______
It goes into the CA 540 California Adjustments - Residents, Section B - Additional Income, row z - Other income as "OTHER" and the amount posted under column B - Subtractions. Cursory look, seems to work. I don't like the undescribed "OTHER" designation, but I think it's better than changing the 1099 input. I welcome any feedback on this.
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