Tax credit bond interest

Interest income from tax credit bonds issued by certain states is exempt from state income tax to the extent that the income is included in federal adjusted gross income. You can designate qualifying bond income by entering the tax credit bond amount in the
Interest income
, the
State postal
code, and
State Use
code fields in the
Interest
statements on the federal
B&D
,
K1
, or
K1T
screens. If the
State Use
code isn't available for the state you entered, it doesn’t qualify for the exemption.
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