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Karina is a North Carolina resident. She is required to file a North Carolina return. She received $580 in North Carolina state bond interest. She
Karina is a North Carolina resident. She is required to file a North Carolina return. She received $580 in North Carolina state bond interest. She also received $1,800 in Texas local bond interest. Both amounts are exempt from federal tax. How is the interest from each of these states' bonds handled on her North Carolina return? a. No adjustment is required on her North Carolina return because North Carolina follows the federal treatment of state and local bond interest. b. The North Carolina interest will be added to her federal taxable gross income. No adjustment is required for the North Carolina state bond interest. d. The total bond interest will be added to her federal adjusted gross income
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