The US Treasury Note Interest should be listed as a subtraction on your Illinois Schedule M. You should not have to adjust the subtraction in TurboTax manually. As AmyC stated, verify that you have entered the interest in Box 3 for US savings bonds. To check this in TurboTax, follow these steps:
- Click Wage & Income
- Click Revisit on 1099-Int
- Click Type it myself
- Enter interest on US Savings bonds and Treas. obligations in box 3
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