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It is telling you to leave the whole state taxes section blank, boxes 15, 16, and 17, if they are empty on your form. If box 17 on your 1099-INT is zero or blank, leave boxes 15, 16, and 17 blank in TurboTax. Do not enter anything. Do not enter zero in box 17. Leave it empty.
If you have state tax withheld in box 17, then you must select the state in box 15. Box 15 should not be blank on the form if there is an amount (other than zero) in box 17.
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