This may be a problem with all state turbo tax software, but it certainly is a problem for New Mexico. The only treasury bond interest recognized by TT was that paid as interest from a UST bond . UST interest in the form of dividends from Vanguard ETF (and presumably from mutual funds also) downloaded from Vanguard by TT was not automatically entered as UST interest on NM return. TT also did not flag the issue for me. I had to open the forms in the software and manually enter the information. If I hadn't noticed the error, I would have overpaid by $1500.
