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State tax filing
"Also, how would TurboTax know this is a US Treasury as opposed to any other bond? The description is just a text field."
I think the answer is almost certainly that no TT does not know it is a US Treasury security when you enter the 1099-B info. But your question is the right one to ask, because if it does not know what kind of security it is, how can it give it the right tax treatment on the state level.
I am guessing there are two possible answers:
1. It doesn't matter if it is a Treasury security or not because the AMD is not exempt from tax in any state anyway so it doesn't care if it is a Treasury or not.
2. In order to exempt the AMD from interest on your state return you have to switch to the state return and separately enter the amount of the AMD as a subtraction from federally reported interest on that return.
But the first thing you need to know with certainty is if the AMD is in fact exempt from income tax in your state. This seems a very difficult question to get a definitive, documented answer to.