TurboTax tax is not subtracting dividends from U.S. obligations from my federal taxable income. Why not, and how do I fix it?

[clljones1]

For two 1099-DIVs, I answer YES to the question Are any of these dividends interest from U.S. government obligations, and enter the amounts.  Yet the amounts never appear anywhere on a form or worksheet, and all of my dividend income is included in federal taxable income.  I need to know how to make this right!

[SteamTrain · Accepted solution]

...that only affects state taxes (if you live in an income-taxing state). 

 For Federal taxes, all Federal obligation interest is still federally taxable.....it doesn't get taxed by the state.