My financial institution does not report the purcahse and sales of US treasury/bonds on 1099-DIV. It sends that information to the IRS and me on 1099-B. I entered my long term capital gains from the US Treasury on under Stocks and Bonds Sale (Under Turbo Tax Perosnal Income section). The Federal TAX box went up immediately as expected (IRS taxes gains from sale of US notes/bonds) but so did my California State Taxes by a certain amount. Why is not Turbo Tax for California exempting me from the gains from trade in the US treasurey? Where do I make the adjustments to get teh state exemption?
