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Federal Home Loan Bank bond interest is not taxable in Massachusetts/How do I get Turbotax to reduce interest

Federal Home Loan Bank bond interest is not taxable in Massachusetts. https://www.mass.gov/technical-information-release/tir-89-8-income-tax-treatment-of-interest-and-gai...

 

The 1099 records the interest in box 1. 

 

On the Massachusetts Interest Income Worksheet, the amount shows on regular interest.  In the interview, on the page that says "Tell us if any of these uncommon situations apply", if I check "Our astate doesn't tax all of this interest" and select Massachusetts, it marks it as Bank Interest, which it is not.

 

On the "Massachusetts Interest Income Worksheet", should I be using "Other Adjustment".  Is that correct?

 

How do I mark this appropriately?

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