I am not 100% certain, but I believe those lines are **subtractions** from any taxable income you would report since interest from debt obligations of the U.S. government (e.g., U.S. Treasury bonds) is exempt from state/local taxation.
As a result, Illinois would be prohibited from taxing the interest on the bonds whether it was distributed or not. Regardless, it appears as if you would enter the entire amount of the bond interest without deductions.
