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You don't deal with it in the NC forms.

 

You Edit the 1099-DIV form in the Federal area, and on a page after the main form, you check a box:

"A portion of these dividends is US Government Interest"

 

...then on the next page is a box to enter the exact $$ amount that was from US Govt bonds.

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Worked perfectly for my NC tax return...the US Govt interest was subtracted from NC income.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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