seen/responded on similar threads it seems some brokers report this in Box 1, others (e.g. Vanguard) in Box 3.
most state programs have some ability to input some sort of miscellaneous / additional subtraction with an explanation. if there is no way to make this subtraction on RI state then probably your only option is to change the 1099 to remove it from Box 1 and put it in Box 3 or input a separate 1099-INT for it. Not a CPA/Expert, no idea if IRS implication but I would imagine Box 1 vs. 3 reporting errors happen and it doesn't affect Fed taxes, and there is clear justification for it.
Beware also if you have accrued interest adjustment for it then it needs to be a separate 1099 as TT doesn't know which box to apply that adjustment against if you have Box 1/3/8 combined on the same 1099-INT.
