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If your interest is exempt from New York Only:

  1. From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
  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 - Interest Income, enter the amount of your New York 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, and will be entered on New York Form IT-201, Line 28 or Form IT-203, Line 27.

If the interest is exempt from Federal Only OR Federal AND New York:

  1. From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
  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, click Yes
  6. If you have interest that is FEDERALLY EXEMPT, enter this amount in Box 8 Tax-exempt interest. If you have FEDERAL AND STATE EXEMPT interest, enter the amount from Box 8 that is exempt in the field titled 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 New York 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 New York 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 New York State returns:

  • Form 1040, Line 8a = $1,000
  • Form 1040, Line 8b = $1,000
  • New York Form IT-201, Line 20 or Form IT-203, Line 20 = $700

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