After you enter a 1099-DIV you get the message "Do these uncommon situations apply". The first selection is "A portion of these dividends is U.S. Government Interest.". Why not just put the Accrued Market Discount from you US Treasury bills/notes in here, admittedly, this 1099-Div may be unrelated to the AMD position, but don't you end up with the same federal tax due AND the correct accounting for state-level deduction of this interest?
