Virginia Schedule ADJ has a Subtractions section where line 4 is where you are supposed to report "Income (US obligations/securities).
I cannot find where in the Step by Step instructions where this is supposed to be reported.
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As long as you have entered the interest income from federal obligations in box 3 of Form 1099-INT, there is no entry that you need to make on the Virginia return. The amount is automatically included as a subtraction on your Virginia return.
Thanks! Shortly after posting this I found another similar post... adding reminder to my tax procedure so I get this right in the future.
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