We'd love to help you complete your tax return, but need more information. Can you please clarify your question?
I have tested this and had absolutely no problem with it.
The adjustment appears on line 22 of Schedule M and is subtracted from the federal income before calculating the state tax. I didn't even need to look for the subtraction, TurboTax brought it up on its own.
Is your interest reported in box 3 of Form 1099-INT? If it isn't that could be the problem.
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