TurboTax CA state return is miscalculating state tax exempt T-bill income

[paul12345]

1099-INT Box 3 income from TreasuryDirect T-bill interest is not being included in the total of state-tax-exempt income for California, resulting in paying state tax on T-bill interest which is supposed to be tax-exempt! I have correctly entered the income in Box 3 of the income 1099-INT section but TurboTax mishandles it, it appears.

[baldietax]

did you resolve this, if this didn't work for CA a lot of people would be complaining here.  There's a similar thread here

https://ttlc.intuit.com/community/taxes/discussion/re-box-3-of-1099-int/01/3884885#M1444889

@VolvoGirl 

[paul12345]

No I did not resolve it. I tested it by deleting the 1099-INT for TreasuryDirect and my CA state tax dropped by exactly 0.8% of the box 3 exempt interest. The 1099 from Treasury Direct has zero in every other field so there is nothing else to enter besides box 3.

Whether this is overpaying CA by that amount or not I do not know. Maybe that is some Medicare investment income surtax or something?