I believe you did it the right way. But did FreeTaxUSA have a way for you to do this manual state deduction and still e-file?So I finished my taxes a while ago and I had to manually adjust this on my state taxes. I think this has to do if you buy on secondary market for something other than the original principal amount what the government considers interest is really a capital gain/loss but how you account for that is not clear.
In my case it is a small amount so if they come back at some point and say I made an error I will just pay if as it likely will be much less than $100.
There is a long thread about Accrued Market Discount, and this post in particular stated that FreeTaxUSA didn't yet have the capability to do the state deduction arising from Accrued Market Discount.
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Statistics: Posted by kobip — Sat Mar 30, 2024 11:08 pm — Replies 3 — Views 493