Treasury AMD as Govt Interest

You need to make an adjustment within your state for the qualified exemption. 

First, it is not clear what numbers are included in line-28, It-201

(simply saying they are from Fed 1099-div, -int, K-1 does not help.)

Second, it will be nice if Turbo Tax included AMD on purchase of treasuries in line 28! That will save lot of hassle, now and later! Thanks.

@AmyC How do you adjust interest income for NJ ?

For a few states, the interest adjustment is made in the federal section. NJ is one of them.

Maine

Maryland

Massachusetts

New Hampshire

New Jersey

Tennessee

West Virginia

Please follow these steps:

1. Return to the federal 1099-INT input screen. 
2. Edit the 1099-INT
3. screen says "Let's get your ... details"
4. Continue
5. screen says "Tell us if any of these uncommon situations apply"
6. Click the box beside "Our state doesn't tax all of this interest"
7. Select your state
8. Continue