When entering the 1099-INT, it asks the question if the interest is non-taxable in your state. New York is not on the list.
That question only refers to interest in box 1 of the 1099-INT.
Savings bond and US Treas interest will only show in box 3 of the 1099-INT, and those $$ are handled automatically. Since no state taxes box 3 $$, the software doesn't need to ask about that (yes, the page where the Q is asked could make it clearer which box(s) are involved) ) You'll have to check your NY Forms to make sure it's actually removed.
Those $$ should show up as a line 28 subtraction on your 2019 NY form IT-201.
Like I said,
That pull-down only refers to Box 1 interest, and has nothing to do with box 3 interest. NY does not exclude box 1 interest, so NY is not on the list.
Box3 interest doesn't need a pull-down (and your Sav Bond interest must be shown in box 3...nowhere else).....anything entered in box 3 will be treated as state-exempt automatically in all income-taxing state forms..
You, or I, am missing the point somewhere?
How is the New York state adjustment shown on Turbo Tax if the U.S. savings bond interest recognized on the federal return is not determined by box 3 of form 1099-INT, but rather it is determined computationally? i.e. the annual accrual of savings bond interest based on an election several years prior?