PA and NH here
Talked to my friend who is a CPA and has a Master's Degree in Taxation.
He said that you do not pay tax on the AMD in either state. He said that it really isn't up to the state as states are prevented from taxing US government interest under Article VI, Clause 2, of the US Constitution. See McCulloch v. Maryland, Osborn v. Bank of the United States, and Weston v. Charleston. In the Weston case the court explicitly held that states cannot tax interest on US bonds and other securities. He said that AMD is considered interest.
For me, I have spent enough time researching this. Now, I am just going to figure out how I am going to override TT to exclude this interested from state taxation.
