Accrued Market Discount for US Treasuries Treatment for California State Taxes

[1953Buick]

In 2023, I purchases several US Treasury Bills in the secondary market and they all matured during the year.  On my federal return, the accrued market discount was reported on 1099B 1f, but Turbo Tax , provided a way to convert the accrued market discount amount into interest reported on Schedule  B (I believe that is what happened).  My question is this:  Shouldn't that Treasury Bill interest be exempt from California State taxes and if so, do I have to make any adjustments in my State tax return to reflect that or does Turbo Tax do that already.

[RobertB4444]

The accrued market discount is taxed as interest but it is not interest.  It is therefore not exempt from taxes in California.

@1953Buick