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Correct...the Learn More is too brief...and doesn't cover all state situations. 

 

So if you are  a resident of CA, and the fund involved does not meet the CA minimum for US govt holdings....you don't enter those $$ at all  (a Blank will probably work)

 

California, Connecticut, and New York all have minimum limits as to whether those $$ can be declared for Mutual Funds  (Appears to be the same 50% minimum for each state)

 

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*