If you are a full year resident, the full amount would be entered to reduce your MD income.
If you are a part-year resident, enter the portion of the income earned from US Obligations while a MD resident.
Subtractions from income include interest on U.S. Savings Bonds and other U.S. obligations, capital gains from the sale or exchange of U.S. obligations, and dividends from mutual funds that invest in U.S. government obligations.
If you are high income, it will also adjust your exemption.
See Tax Information for Individual Income Tax
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