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I noticed that as well and believe that Accrued Market Discount should not be taxable in California for US Treasury Obligations.  I made the adjustment in the input section for "State", then "Miscellaneous" > "Adjustments to Income".  Then input the description and amount as a subtraction.

 

It seemed to work and corrected the California Adjustments - Subtractions in the CA 540 line 14.