Accrued Market Discount

[golfinvestor]

Why does TurboTax not recognize accrued market discount on redeemed Treasury bonds as a subtraction to income with filing AZ State taxes?  The interest amount is properly recognized on IRS Schedule B, but it is not recognized as a subtraction to total State income when filing an AZ tax return.  Is there a place on the AZ state return where this can be adjusted?

[hbruhl]

Same problem with Virginia, but the Virginia form has a place for additional adjustments.