Deductions & credits

I'm assuming that you're entering information in the 1099-INT interview.

Nothing has changed in this interview from the prior year, at least not in the desktop editions.  After entering your 1099-INT information you click "Continue" and on the next page - "Tell us if any of these uncommon situations apply" - you tick the box next to "I need to adjust the taxable amount."  You then tell TurboTax the state(s) involved and on the page following that - "Report Interest Adjustment" you enter the amount and tick the "My accrued interest is included on this Form 1099-INT."

Tom Young