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I am having the same issue.  It combines all interest on the 1099-INT as being from US Obligations on the 502SU.  If I uncheck the "special handling for MD" question, the 502SU looks fine (the extra interest from other sources is NOT included).  I'm not sure if there might be other effects.

 

TURBOTAX:  has anyone looked at the special handling flag vs 502SU?  It doesn't do what it should.

 

Thanks