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View Full Version : States Taxes, Moving Expenses, Non-Taxable Interest


crazee85
Mar 18, 2010, 12:02 PM
Hello,

I had moved from MD to OH last year, while under F-1 OPT. I am claiming moving expenses in my federal form 1040NR. I had got a bonus for my new checking account, for which the bank had sent me a 1099-INT form. I understand this would be not taxable in my federal form.

While filling the part-year resident forms for MD and OH, both of these ask for adjusted gross income from Form 1040NR (which already has moving expenses deducted and doesn't include the amount from 1099-INT). I don't know if I have to add these two amounts anywhere. Could you please help me with that?

Thanks!

crazee85
Mar 20, 2010, 02:11 PM
Any help will be highly appreciated! Thanks!

ebaines
Mar 22, 2010, 08:13 AM
Please clarify - did the 1099-INT have an amount in Box 8 ("Tax Exempt Interest" ) and nothing in Box 1 ("Interest Income")? If so, then you indicate additional income on the MD and/or OH tax returns, above and beyond the income reported on your federal form. For OH you fill out schedule A, and include this interest as "non-Ohio state or local government interst and dividends." For MD, you complete line 2 of form 502, " Tax-exempt state or local bond interest."

crazee85
Mar 22, 2010, 08:51 AM
Thanks ebaines.

1099-INT had an amount in Box 1 "Interest Income" only. It is from a bank in OH.
As a nonresident alien student, I understand that the bank interest is exempt from federal taxes. However I am not sure if it is exempt from state taxes as well (though I think it should be).

Thanks!

AtlantaTaxExpert
May 4, 2010, 10:09 AM
The interest IS exempt on your federal return due to your F-1 status.

However, it is probably still taxable on your state return.