Vanguard reports accrued interest on US Treasury Notes on a 1099-B, not a 1099-INT. Filing the proceeds and basis on TurboTax in the 1099-B section shows the gain as accrued interest income but it does not have an option to designate the interest as interest on US government securities and thus does not carry through as exempt in the Virginia tax reporting. Am I missing something, or does Turbotax need to be tweaked to allow for this in the handling of the exempt accrued interest when reported on a 1099-B?
