Thank you DaveF1006,
The capital gains issue has been resolved, at least for NJ return. Under Adjustments, eventually TT will ask if there are any "Disposition of Property" not subject to NJ taxes. Click YES, and then check all the boxes (under "Omit") corresponding to Treasury obligations in the next screen. These will be excluded from NJ income.
However, my original question was solely in regard to 1099-MISC Box 8 - Substitute Payment in Lieu of Dividends.
Where on NJ return can you indicate that these particular payments are from Treasury bonds?
Thank you.
