How do I proceed asked where the tax exempt interest is from? I do not need this for income tax in Texas.

@hopecook666 

Just go to the bottom of the states list, and select "Multiple States".  Correct, it makes no difference for you......but unfortunately something must be selected.

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(For desktop software users the selection is "More than one state"...also at the end of the states list )

or use TX it really doesn't matter for you.