How report state exempt amount of agency bond interest?

[UpQuark]

My state would exempt my federal agency bond interest but I can't figure out how to tell the online tax preparation software about it. The agency bond interest is reported on a 1099-INT in box 1, and I don't see any prompts asking for the amount that is state exempt. I do get a prompt for 1099-DIV amount that is from govt obligations, so I put the SPAXX portion there successfully, just I'm not seeing any similar way to deal with the 1099-INT.

I'm using the "Express1040" online tax prep site. Does anyone use that and know what I should do? Or does anyone use a different site that handles Agency bond interest easily?

ETA - I'm wondering if I could just increase the amount on the 1099-DIV govt obligations prompt to include the agency interest, maybe on the mysterious worksheets behind the scenes it will just lump all sources of the state tax exempt portions together?

 

[COcheesehead]

It’s an interview question in TurboTax.

 

[ut2sua]

My state (California) doesn't allow Spaxx to be deducted. I think it is because Spaxx doesn't have a high enough % of state tax exempted issues (Treasuries etc.) Even with Fidelity treasury only MM (Fdlxx), not 100% is state tax exempted, so you may need to look into your state tax law.

 

[UpQuark]

so you may need to look into your state tax law.

I just googled it, it appears that Maryland used to have a 50% threshold but voided that in 2009 (based upon a 1990 Maryland court case against the 1989 law that required 50%, it seems strange it took another 19 years before they got rid of the threshold!).