Line 20: Interest income on state and local bonds and obligations

Do you have interest income from state and local bonds and obligations from states other than New York State or its local governments?

If No , go to line 21.

If Yes , enter any such interest income that you received or that was credited to you during 2023 that was not included in your federal adjusted gross income. This includes interest income on: state and local bonds, interest and dividend income from tax-exempt bond mutual funds, and tax-exempt money market funds that invest in obligations of states other than New York.

If you purchased a bond between interest dates, include the amount of interest you received during the year, after subtracting the seller’s accrued interest (the amount accrued from the interest date preceding your purchase to the date you purchased the bond). You should have received this information when you purchased the bond.

If you sold a bond between interest dates, include the amount of interest you received during the year plus the accrued interest amount (the amount accrued from the interest date preceding the date you sold the bond to the date you sold the bond). You should have received this information when you sold the bond.

For purposes of this addition, bond premium amortization is not allowed as a direct offset to interest income. You must report it:

as a subtraction modification on Form IT-225—if the bond premium is attributable to a trade or business, or

as an itemized deduction addition adjustment on Form IT-196, line 44—if the bond premium is not attributable to a trade or business, but only if you itemize.