Thanks for the response, Hal_AI.
In the past, I have always reported the interest/dividend income from US government obligations (in Virginia) by entering an adjustment to income as a subtraction on Virginia's Schedule ADJ form, which, I believe, provides Box 4 for that purpose. I normally compute the adjustment using information provided by financial institutions (in my case by Vanguard). Every tax season, Vanguard provides a form that lists the percentages of ordinary interest/dividends for various funds that originate from US government obligations. Turbotax typically allows me to enter the adjustment in step-by-step mode. However, this year, it erroneously records the adjustment entered in step-by-step mode as an addition in the Schedule ADJ form, which increases the state tax burden. I believe this is a bug in Turbotax, which I think I was able to work around by opening the Schedule ADJ form and manually making the correction. It is a pain to have to do it this way. So, hopefully, Intuit will provide an update that fixes the issue, if this indeed turns out to be a bug...
DISCLAIMER: I am not a tax expert. So it is entirely possible that I have been doing this incorrectly all along...
