State tax filing

It depends. Verify the deductions to which you are entitled. US Obligations and if you are an AL resident, AL municipal bonds qualify.

• If you have a 1099-INT, entered as a federal obligation - no adjustment necessary. 
• If you have a 1099-DIV, be sure to select a portion of the dividends are interest and enter the amount.

Follow these steps:

1. You can select none of these apply -unless you have federal obligations then select it. 
2. The next screen will allow you to make the state adjustment you need. 
3. Select that you earned exempt interest-dividends in more than one state.
4. Select PA and enter the amount
5. Select the bottom option of multiple states and enter the remainder

Reference: What interest income is exempt from Alabama taxation?