Yes, government obligations are not taxable to the states. There are a couple of places the interest can be and you may have to mark it.
Your 1099-DIV
box 1a shows ordinary dividends. This income is taxable to the federal but may not all be taxable to the state. Your supplemental pages will show if you have US Obligations in box 1. In that case:
- on the next screen uncommon situation
- select a portion is US Government interest.
- Continue.
- Then enter the interest.


Your 1099-INT
- box 3 shows interest on US Savings Bonds, Treasury bills, bonds, notes. Interest on US Obligations is not taxable at the state level but is taxable on your federal. It automatically removes from your state return.
- You may need to select an uncommon situation applies if your interest is in another box.

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