Schwab reported my t-bill accrued interest as a cap gain with an accrued market interest on my consolidated 1099. Then Turbo tax recognizes it as interest and it goes to the schedule B as separate line item from the rest of the schwab dividend and interest and reports. Line item 110000.00 US TREASU NT 0.125%09XXX**MATURED** Accrued Market Discount. So the federal income correctly shows this as interest income. BUT and here is the issue- I can't see where to flag it as government interest for the oregon state filing so I can deduct from my state income. I can't edit/overrid the or state form directly. I have to somehow flag this as government interest in the federal files. Where would I do that? Driving me crazy.
