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The law regarding U.S. Treasury income has not changed. Federal interest is exempt from state taxation. To enter exempt-interest dividends in TurboTax
We're actually talking about box 1a on the 1099-DIV, not box 11. There is a follow-up page where you indicate what sub-part of box 1a $$ came from US Govt bonds, so that income won't be taxed by whatever state is involved.
This IS a software bug in the "Online" software only (not in Desktop).....and as yet, we have no indication out here or in the FAQs, that TTX is working on fixing this BUG.
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See actual test numbers and confirmation of the problem here....and please report the problem up-the-line as a real software bug that needs fixing:
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