Accrued Market Discount for treasury notes mistakenly deducted on CA state return

FreeTacks
FreeTacks Member Posts: 1 Newcomer
in Filing my taxes

I live in CA. I purchased treasury notes on the secondary market that matured in 2025. The 1099-B shows an Accrued Market Discount (AMD) in box 1f. My understanding is that this AMD should not be deducted on my CA return. However, I entered the 1099-B and FreeTaxUSA deducted the AMD on my CA state return (the deduction appears on Schedule CA (540) line 2, column B). What is the best way to fix this in FreeTaxUSA?

Comments

  • TaxMorgan
    TaxMorgan FreeTaxUSA Agent Posts: 104 image
    Hello FreeTacks,

    It is hard to say for sure how to change the reporting of income on your California return without having access to your account information. Generally, there is a section of the software in the state section where you can enter adjustments. I would recommend contacting customer support directly from your account so that they can view your account information and help you with more specific instructions.

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