No. You actually need to put this into your state return in order to claim the deduction. To claim, edit your Indiana State return. When you get to a screen that says Here's the income that Indiana handles differently, scroll down to Miscellaneous>Indiana-only Tax exempt Bond Deductions. Here is where you will claim the deduction.
Keep in mind, you can only claim this deduction if you had interest from a bond issued by or in the name of certain Indiana government subdivisions or entities or amounts received upon redemption or maturity of the bond, the amount of interest or other income included in federal gross income can be deducted on Indiana Return.
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