why would adding Government securities exempt from state tax would change federal return

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Interest income from Treasury bills, notes and bonds - This interest is subject to federal income tax but is exempt from all state and local income taxes

Secure 2.0 law says direct rollover from 529 to beneficiary's roth ira is not taxable for federal income tax. Why does TurboTax says it is taxable income?

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why would adding Government securities exempt from state tax would change federal return

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