TurboTax has an entry field for accrued market interest, which will be treated as interest income. It is okay to move the number to this field if it did not download and map properly.
Accrued market discount is not exempt from state taxes, and TurboTax will treat it properly when in Box 10 on the 1099-INT screen. Be sure to check "My form has info in other boxes" to see the input area for Box 10.
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