This does not appear to address the issue and applies to all states where interest from US Treasury Notes are state tax free. This type of income is reported on a 1099-B and includes "Accrued Market Discount" but TurboTax DOES NOT adjust the State 1040 Tax Form to not include this as income and subsequently are taxed on this income at the state level. Only way around this is what one commentor wrote is to file Federal Income Tax, remove this income and file Stat Income Tax.
TurboTax please fix this issue!
