rvfulltime wrote:

- quote -

The IRS issues a Form 1099 for this interest, which apparently is a form
not available to ordinary mortals. The boxes are not numbered, you are
correct.

Art Kamlet correctly answered this in the very first reply. "Interest
paid by the U.S. government" is more encompassing than the specific
category of interest that is excluded from taxation by the states.

-Mark Bole

"The IRS has not issued a definition for taking a position."

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On Apr 3, 10:24 am, rvfulltime <rvfulltime.nosp...[at]isp.nospaam.comwrote:

- quote -

It's fully taxable, same as Box 1 of 1099-INT.

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Mark Bole wrote:
- quote -

The 1099-Int supplied by the IRS for interest paid by the US Treasury due to an
amended tax return that resulted in a refund does not have the various boxes
that some 1099-Int forms have. It just says "Total Interest Paid...".

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On Apr 2, 7:17 pm, rvfulltime <rvfulltime.nosp...[at]isp.nospaam.comwrote:

- quote -

Line 3 of 1099-INT is subject to federal tax and free of state tax.

http://www.irs.gov/pub/irs-pdf/f1099int.pdf
page 2

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rvfulltime <rvfulltime.nospaam[at]isp.nospaam.com> wrote:

- quote -

Not a blanket rule but often true.

- quote -

Clearly this goes on form 140, Line C19. I do know know how
Turbo Tax prompts you for it.

Steve

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rvfulltime wrote:
- quote -

Before you complete "Turbotax for Arizona", you have to complete
"Turbotax for federal". If you correctly indicate in which 1099-INT box
the interest was reported, you should be OK.


-Mark Bole

"The IRS has not issued a definition for taking a position."

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <%JdBl.368$PR5.356[at]eagle.america.net> ,
rvfulltime <rvfulltime.nospaam[at]isp.nospaam.com> wrote:
- quote -

States do not tax the direct obligations of the United States.

That includes US Treasury bonds/notes//bills, US Savings Bonds,
Federal Home Loan Mtg, Sallies Maes and other direct obligations.

But other US-related instruments and interest paid in the course
of operations mih be taxable, though each state makes its own rules.


Such interest payment can come from Ginny Maea, Freddie Macs, interest
paid to you when receiving a claim settlement against the government,
and that includes interest paid to you by the IRS in connection with
your claim for refund, perhaps on an amended return.


In the vice versa category, Federal ordinary income tax does not apply
to municipal interest of states, their subdivisons, or certain
multi-state Authorities.


But for Alternative Minimum Tax, municipal bond interest of Private
Activity Bonds is taxable (Perhaps Commonwealth Edison convinces
the state to issue Munis whose funds will be used to build a
privately-owned electric generating plant)



I just completed Turbo Tax for
- quote -

If you believe your software does not allow excluding direct US
Gov't obligatons from state tax, well, that sounds wrong to me,
but then I do not use TT. I'll bet they provide a method for
excluding this income.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I was always under the impression that states couldn't tax interest income paid
by the federal government and vice versa. For the first time in my life I am
living in a state with a state income tax. I just completed Turbo Tax for
Arizona and it did not ask me how much income was interest from the Federal
Gov't. Documentation with my 1099s from Fidelity and Vanguard showed how much
was US gov't interest.

Am I wrong on my impression?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >