Get your taxes done using TurboTax

There's actually a more accurate way to capture the interest subtraction on your Colorado return.

But first, if you selected any answer other than None of these apply on the Do any of these uncommon situations apply? screen in the federal portion of TurboTax, that will need to be corrected.  To do this in TurboTax Online:

1. Select Tax Home in the left pane
2. On the Hi, let's keep working on your taxes! screen, select the dropdown to the right of Income & Expenses
3. Select Start, Pick up where you left off, Review/Edit or Work on other income, as appropriate
4. Select Edit/Add to the right of Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto)
5. Select the dropdown to the right of your U.S. government interest entry, then select Edit 
6. On the Now, let's review your 1099-INT screen, make sure your amount was entered in Box 1 (since that reflects what was on your 1099).  Select Continue
7. On the Do any of these uncommon situations apply? screen, select None of these apply, then select Continue
8. On the Let’s finish pulling in your investment income screen, select Confirm

 Now, to enter the Colorado subtraction associated with your U.S. government interest in TurboTax Online: 

1. Open TurboTax Online
2. Select Tax Home in the left pane
3. On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the State Taxes box, then select Start, Continue, or Review/Edit
4. In the left pane, select Prepare State
5. Proceed through the screens until you come to the Status of your state returns screen
6. Select Start, Continue or Edit to the right of Colorado
7. Proceed through the state screens until you get to the Here's the income that Colorado handles differently page
8. Select Start to the right of Interest from U.S. government sources
9. On the Interest and Dividends from Mutual Funds screen, enter the interest you received from U.S. government obligations (other than interest from Treasury bills and notes) that isn't subject to Colorado income tax.  Select Continue
10. You should see the subtraction on the Your U.S. Government Interest Subtraction screen that appears 

Interest from U.S. government obligations is typically exempt from Colorado income tax. 

To see if the interest you're reporting on your federal return is exempt on your Colorado return, see the Colorado Department of Revenue's FYI Income 20, United States Government Interest  factsheet. 

@tomis916