Is there a value for state tax withheld in box 17?
If box 17 has taxes paid in it, then you will want to enter the 2-digit state abbreviation for the U.S. state that the tax was paid to. If you live in California and the tax was withheld and remitted on your behalf, then enter CA. If the interest was paid by a bank in New York, and they remitted the tax to their own state, for example, you would enter NY.
If there is NO value in box 17, and you are still experiencing this error, then try clicking box 17 with your mouse or cursor, and hitting backspace on your keyboard to delete any spaces or zeroes that may have been pulled in by the import. Do this same process for boxes 16 and 15 to make sure there are no "phantom" data entries for state tax, if there is no state tax paid. Failing this, you may need to delete this 1099-INT entry (select trashcan icon) and re-enter it by manually typing it in. Another possible workaround is to type XX for the state abbreviation, but this should be a last resort.
Quick navigation: TurboTax - Where do I enter Form 1099-INT?
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