No, sadly, it does not. Interest on government obligations comes to the Interest Income Smart Worksheet on Schedule B from the various 1099-INT payer forms and should then be offered to the user for division between the states depending on when the interest was received. I do not see that this happens in the interview. The data source for Michigan Schedule 1 Line 10 says,
Full-year residents:
From federal Schedule B, Interest and Dividend Income, Interest Income Smart Worksheet, Box 3, US Savings Bond/Treasury Obligations PLUS federal 1099-DIV Worksheet, Box 1a, U.S. Government Interest less related adjustments.
But for part-year residents, the line is left entirely blank. I went through this with TT support online and they advised me to override, which I did, but it prevented me from filing electronically. And, TT didn't realize it would prevent electronic filing until after I'd paid for the state e-file. (I've since received a refund, thanks.) I think this is almost certainly a bug, but I don't see where to report bugs.
