I live in Maryland and Maryland Income Tax Administrative Release No.13 states "Maryland does not tax interest, dividends, or profit realized from the sale or exchange of United States obligations." So, AMD for Treasury Notes is not taxable.
So, I used the same method using the FORM interface. Go to Maryland Form 502SU and enter the amount in item C of "Income from US Obligation Smart Work Sheet." Item C is "Other interest not subject to Maryland Tax.
This seems to work. Math is correct.
Thanks
