Tax Slayer entry:
Varies depending on the source of the interest.
Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Interest Income
- Data will carry across to Schedule B and then to Form 1040 line 2b – Taxable interest.
- OUT OF SCOPE if a Nominee Interest, OID adjustment ,Accrued Interest, or Amortized Bond Premium (ABP) adjustment is required.
- If the interest is from a US Government obligation/savings bond (box 3), it is not taxable to Colorado. Enter that amount in the the Government interest line and also the state exclusion line.
- Savings bond interest distributed prior to selling the bond is OUT OF SCOPE.
Federal Section > Deductions > Itemized Deductions > Miscellaneous Deductions > Investment Fees and Expenses
- For 2016 – 2017: Investment expenses are entered on Schedule A line 23, Misc Deductions.
- For 2018 and later: This deduction has been eliminated.
For 2016 – 17: Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Tax Exempt Interest Income
For 2018 – 19: Federal Section > Income > Interest and Dividends (1099-INT, 1099-DIV) > Interest and Dividends > Interest Income
- Data will carry across to Schedule B and then to Form 1040 line 2a – Tax-exempt interest.
- If the interest is due to a municipal bond from another state, it is taxable to Colorado. Add it back as a state taxable item.
Federal Section > Other Taxes > Alternative Minimum Tax
(or search for Form 6251)
- OUT OF SCOPE if AMT applies
- Ignore – entry not required.
Federal Section > Payments & Estimates > Other State Withholdings☣ SOFTWARE ERROR If state tax was withheld, the state return will have to be paper filed to support that withholding. Attach a copy of the 1099-INT that shows the withholding.