Sounds like your state mixes together Treasuries and Munis on this line, for all things exempt from tax in your state, which should be a combination of the following:
US Gov Obligations (Federally Taxable, State Exempt):
1099-INT Line 3 less any premium (Line 12) or accrued adjustments (manual input)
1099-DIV Line 1 "US Government Obligations" amount (manual input) for MM Funds etc
1099-OID Box 8 less any premium
Federally Tax Exempt Interest (i.e. Municipals):
1099-INT Line 8 less any premium (Line 13) designated as Hawaii/US Possessions (% manual input)
1099-DIV Line 12 designated as Hawaii/US Possessions (% manual input)
Unfortunately with TT state there is not usually an easy way to 'double click' on the state exemptions and get the list of 1099 items making it up, you just have to go through your 1099s and keep track what your state subtractions and additions are going to be and go thru the 1099s if it doesn't tie out.
