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Maryland Form 502, Line 2 - some of this amount is not taxable by Maryland because it comes from Maryland bonds. How do I adjust this?

 
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Maryland Form 502, Line 2 - some of this amount is not taxable by Maryland because it comes from Maryland bonds. How do I adjust this?

When you enter the 1099-INT for these bonds on the federal return, the second or third screen after you enter the 1099-INT itself, you will see a screen headed "Tell us if any of these uncommon situations apply".

Click the box next to "Our state doesn't tax all this interest".

This will open a pull-down menu; click on Maryland.

When you go to your Maryland return, you will see that this interest is not included in Line 2 on the 502.

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