I live in Maryland and have savings acct interest and sav. bond interest. How do I answer the uncommon situation of "My state (MD) doesn't tax all of this interest"?

Entering the 1099s into TurboTax is pretty straightforward.  Go ahead and enter them into the 'Wages & Income' section.  

 

Once you have completed filling out your federal tax return you will be able to go through your Maryland return.  There are a number of sections that will require your review.  

 

Read thru these carefully and you will be able to enumerate any income that should be treated differently by Maryland.

 

@meg19920