Yeah, sometimes folks who prepare their own 1099-INT forms, they sometimes accidentally put their T-bill interest received in box 1 instead of box 3. As long as box 3 is used for those $$, they "should" be properly handled in anyone's state forms.
Apparently yours was properly entered as box 3 $$.
Really glad to hear that you found that those $$ were removed form CA income. Sometimes looking thru the actual forms will answer questions you never thought to ask.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
