@fjsingel
As I previously mentioned I think step #1 is to find out if the accrued market discount for the particular bond that is on your 1099-B IS in fact exempt from income tax in your state because if it is not, you don't have to worry about entering anything else in TT other than the federal 1099-B.
So far I have not found a convincing answer to this question so for me I am not up to step #2 which would be to turn that answer into proper entry of information in TT.
However, from my experience with TT in past years, I am guessing that step #2 would be accomplished by manually entering the amount that is exempt from state tax (if any) into your STATE tax form. For my state there is a place to enter subtractions from the amount of federal taxable income reported on the federal return into the state return in TT. Don't know about other states.
