ABeegs,
Nope, Box 12 is for dividends that are exempt from federal tax.
To find the US Government interest portion, you have to go to supplemental tax information provided by the mutual fund or broker. It is often included with your statement by big outfits like Fidelity but not always. If you are willing to share the name of the particular investment, I will be happy to research it and show you the steps I took to find that information.
The reason TurboTax asks about US Government interest is that it may be excluded from state taxation. The rules for exclusion vary by state. In Colorado, any amount of US Government interest is excludible. In California, more than half of the income of the fund has to be from such sources. If you are willing to share your state, I can look that info up for you, too.
