Thank You for your reply. I called the Nebraska Dept of Revenue today to confirm that the Accrued Market Discount on Treasury Notes could in fact be excluded. Affirmative. So, I decided to try going into the Forms section in Turbotax. I found where the amount should be excluded. Turbotax had added an additional line 12.b on their Schedule 1, on which I entered the additional US Govt Interest amount and described it as Accrued Market Discount from Treasury Notes. Lo and behold it added the amount to the total (without giving me any errors.) Also it created a schedule which shows two lines for the total exclusion. The first for Interest received directly from the Government, the second with my description for the total Accrued Market Discount. I have submitted it to the State. Waiting and hoping it will be accepted as sent. Disappointed that I had to get to this point without any guidance from Turbotax.
