There was an interesting suggestion in another thread (link below with example) to use the "US Gov Obligations" adjustment on a 1099-DIV to book the AMD to your state subtraction - not putting it in Box 1, just adding to the US Gov Obligations amount.
From some quick testing it seems TT doesn't enforce this amount needs to be less than Box 1 and whatever you put there should hit your state subtraction. If you don't want to hack an existing 1099-DIV and want to be more transparent you could also try entering a 1099-DIV called "AMD STATE ADJUSTMENT" or something like that, with $0 in Box 1a and the AMD as the US Gov amount (which would appear in your Fed return Schedule B but with $0 impact on Fed income).
Not a CPA/expert so I'm not endorsing or vouching for any side effects. I already filed with miscellaneous adjustment on my state return so I have not seen it work end to end thru filing. Passing this idea on for others still stuck.
https://ttlc.intuit.com/community/taxes/discussion/re-accrued-market-discount-on-treasury-bonds/01/3...
