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posted Feb 24, 2023 10:04:13 AM

Accrued Market Discount - US Treasuries State Tax Treatment

I have redeemed US Treasuries which result in reported capital gains that is offset (net zero gain/loss) by the accrued market discount ("AMD") as shown on my 1099-B Box 1(f).  At the Federal level, Turbo Tax correctly reports the AMD as "interest" on Schedule B (since both US Treasury interest and AMD are treated as ordinary income at the Federal level).  At the State level (OH), all interest on US Treasuries is non-taxable, yet I do not see any place or question in Turbo Tax to enter the AMD amount for the State return. My question is, at the State level is the reported AMD on US Treasuries treated the same as US Treasury interest (non-taxable) or is this treated as ordinary income? If the AMD is treated as US Treasury interest, and therefore not taxed at the State level, how/where is this entered in Turbo Tax? 

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Feb 26, 2023 1:27:23 PM

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