Connecticut Interest on U.S. Government Obligations

Article ID: 33628  

Question
Connecticut Interest on U.S. Government Obligations

Answer

Interest on U.S. Government Obligations

Enter the total amount of interest income (to the extent includible in federal adjusted gross income) derived from U.S. government obligations, which federal law prohibits states from taxing (for example, U.S. government bonds such as Saving Bonds Series EE and Series HH, U.S. Treasury bills and notes). For Series EE U.S. Savings Bonds, you are entitled to include here only the amount of interest subject to federal income tax after exclusion of the amounts reported on federal Form 8815.

In general, you will report the net taxable amount on federal Form 1040, Schedule B, or federal Form 1040A, Schedule 1. Do not enter the amount of interest income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing interest income derived from these obligations, and this interest income is taxable for Connecticut income tax purposes. Do not enter the amount of interest paid to you on any federal income tax refund.


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