@SteamTrain Yes, I did as you suggest and double checked the state form. Once I separated out the box 1 and box 3 amounts into separate 1099-INT worksheets, TTX correctly accounted for the accrued interest adjustment. It wasn't obvious at first, but in the New York form there is a line for the deduction of the amount of federal income that is attributed to Treasuries income (IT-201, line 28) and the amount subtracted for the accrued interest in the federal form is added back in to this line. I confirmed this by playing with the accrued interest amount in the 1099-INT worksheet and seeing it change appropriately in the New York form. Thanks so much for your advice.
