States can not tax U.S. Government interest, including Savings bonds. But, you do not enter a deduction for that, in the TurboTax state program. The deduction happens automatically if you entered the savings bond interest in box 3 at the 1099-INT screen.
Be sure that the US Treasury Interest in entered in box 3, at the 1099-INT screen. When you first see that screen, check the box "my 1099-Int has more than just a box 1", to get access to box 3.
