Do I need to manually adjust for state-tax exempt interest amounts?

[sfvoyage]

I live in California and have interest income from various CA muni bonds and US treasury and agency bonds that are exempt from state tax.  They are reported on my 1099-INTs in:

Box 1 - Interest Income:  most or all of this income are CA state tax exempt for me

Box 3 - Interest on U.S. Savings Bonds and Treas. Obligations:  all are federal-taxable but state tax exempt

Box 8 - Tax-Exempt Interest:  all are both federal and state tax exempt

I am under the understanding that for amounts entered in Box 3 and Box 8, TurboTax accounts for the tax exemption for my California state tax return, and so I don't need to manually make adjustments, whereas for amounts entered in Box 1, I need to manually make adjustments (because TurboTax doesn't know how much of it is state tax-exempt, unless it examines my interest details line-by-line for each of my 1099-INTs).

I would like to confirm if my above understanding is true.  I paid for and called TurboTax's live tax advice line several times over the last 2 days and was given 3 conflicting answers:  1) Only Box 1 needs manual adjustment by me; 2) all 3 boxes need manual adjustment; and 3) none of the 3 boxes need manual adjustment - all of those amounts will be automatically accounted for as tax exempt in my California state tax return.

Thank you. 

[Mike9241]

Usually, the interest included is not state tax exempt. if you are sure then it will need manual adjustment on the CA return

as to box 3 The following are not considered U.S. obligations for California purposes: Federal National Mortgage Association (Fannie Mae); Government National Mortgage Association (Ginnie Mae); or Federal Home Loan Mortgage Corporation (Freddie Mac). 

as to line 8 Turbotax should ask about the state and amount so if you enter CA and the amount it should be excluded on CA and 1040

[sfvoyage]

Thank you for your reply.

For Box 3, I have none of those you listed and all income are indeed CA tax exempt.

For Box 8, I found that I can adjust for the income during the process to adjust interest income while working on my Federal tax return.

For Boxes 1 & 3, where do I adjust for the tax exempt income, while working on my California tax return?