Turbo Tax will automatically exclude it on the state return when you enter it in box 3, not box 1.
Revisit the 1099-INT section on your federal return to review your entries.
The amount goes on Schedule M1M, Income Additions and Subtractions line 14.
In TurboTax online you can check MN tax summary, it would be included in the "Subtractions" number.
- From the left menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)
- Select Tax Tools then Tools.
- On the pop-up menu titled “Tools Center”, select View Tax Summary
- On the left sidebar, select MN Tax Summary
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