Since Texas does not have an income tax, including on interest income, it is not available to be selected here. There would be no taxable income or tax withholding to report in this area of the form.
Be sure that there are no entries in Box 16 or Box 17 of this form and you should not get any errors related to these fields - it is not a required entry field in TurboTax for Form 1099-INT.
Hello! I'm having the same issue. Were you able to resolve this?
If I am not mistaken, you are looking in the line that is asking about withholding on the interest. Texas, as you know, doesn't have a state income tax, so there would be no reason to withhold taxes for the state tax return.
Please let me know what box you are looking at for the pull down menu of states. Review Susan's answer above.
If it turns out that the payer of interest really did withhold money for Texas, then please contact the interest payor and ask them to refund that money to you, since they should not have withheld it and certainly didn't send it to Texas.