Search Help Topics:

If your interest is exempt from State ONLY, please follow these instructions:
  1. From within your TaxAct® return (Online or Desktop) click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Investment Income to expand the section, then click Interest Income (Form 1099-INT)
  3. Click Add to create a new copy of the form or click Review to review a form already created
  4. Select Step-by-Step Guidance.
  5. When you come to the screen titled Interest Income - 1099-INT Income, enter the amount of your State Exempt interest in Box 3 Interest on U.S. Savings Bonds and Treasury obligations

The amount you enter in Box 3 will be added to the total interest income on the Federal return, but will not be included on the State return.

 

If the interest is exempt from Federal ONLY OR Federal AND State, please follow theses directions:

  1. From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal.
  2. Click Investment Income to expand the section, then click Interest Income (Form 1099-INT)
  3. Click Add to create a new copy of the form or click Review to review a form already created
  4. Click Step-by-Step Guidance to enter or review the information.
  5. When you get to the screen titled Interest Income - Tax-Exempt Interest, enter the appropriate amount in Box 8. NOTE: If you have FEDERAL AND STATE EXEMPT interest, Continue to the screen titled Interest Income - State Tax-Exempt Interest, then click Yes. Enter the amount from Box 8 that is also state exempt in the field Amount from box 8 that is both federal and state exempt interest.
Example for Federal and State exempt:
You have $2,000 dollars of total interest, with $1,000 being federally exempt and $300 being state exempt. Enter $1000 in Box 1 of the Form 1099-INT. The $1000 that is federally exempt would be entered in Box 8. The $300 that is exempt from state taxes would be entered in the field Amount from Box 8 that is both Federal and State exempt interest.

In this example, the following interest income would be reported on the Federal and State returns:
Form 1040, Line 8a = $1,000
Form 1040, Line 8b = $1,000
State return (line numbers differ) = $1,700

Was this helpful to you?