Yes, I had the same problem last year and manually input the adjusted Federal Interest Income amount on the Michigan return. Although this corrected the Michigan return's tax calculation, the manual override of the number that normally transfers from the Federal return resulted in being unable to e-file the Michigan return even though the TurboTax review reflected NO Federal or Michigan errors.
I will review the other linked posts......thanks for your feedback. Is there a way to get TurboTax support staff to address this? I spoke an hour on the phone with my Broker (Morgan Stanley's E*Trade) yesterday, and that representative indicated their 1099 reporting looked right to him. In my case the interest income on T-bills was correctly shown on their 1099 as Federal government interest income on line 3 and accordingly TurboTax reflected this amount as a subtraction from my Michigan taxable income, but with respect to interest earned on the Treasury Notes (which have a longer maturity) it reflected differently....it went to the Capital Gains & Losses section, TT put the items on Schedule D, then "adjusted" the gain (interest) and moved the income to Schedule B as additional interest income but it is not classified as government interest income and accordingly is not being deducted on the MI return.
BTW, last year, because I could not efile due to the manual override, I printed the Michigan return and filed it by paper in the mail.
