I agree, given the ambiguities and different state treatments, it seems TTX just took a position not to support this automatically or flexibly through to state returns. The state software should provide ability for manual adjustments, when I hit this for VA I put in a manual subtraction with explanation.
There's a long running thread from last year on this topic here. Not sure if there was any discussion of how to handle NY specifically in the thread. Expecting this topic to trend again once folks get their 1099s, seems you are ahead of the game.
https://ttlc.intuit.com/community/taxes/discussion/accrued-market-discount-on-treasury-bonds-state-t...
