No, that is not the correct way. The 1099-OID is reported under and the amount should be listed in Box 8 which should exempt it from your state return. This will still show up on your federal return as it should. If it is not in Box 8, you can list it there. This will exempt it from your state return.
- Open your TurboTax return
- Search (upper right) > type 1099oid > Open the FAQ (TurboTax Online) > Click 1099-oid original issue discount > TurboTax Desktop click the Jump to... link
The 1099-B should not be skipped. You would enter it with a sales/redemption price equal to the cost basis. The interest you included in your taxable income becomes part of your cost basis for the redemption.
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