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The selection for "My state doesn't tax all of the interest" ?
That selection only applies to the states listed for interest that appears in box 1 of a 1099-INT, where that interest comes from certain "In-state" banks and credit unions located in their own state. Most states will tax the interest from bank consumer accounts, no matter where the bank is located.
Interest from US Govt T-bills you own, or even US Savings bonds, should be listed in box 3 of the 1099-INT you received....and when entered there in box 3, those $$ are automatically either excluded, or subtracted by the software, from any state's taxable income in that state's tax return.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
