I do this:

Thank you for the quick response!

Does this address the fact that interest on Treasury Bonds held by S-Corp don't get taxed at the State level?

I really appreciate your help. 

It creates a memo on the Federal K-1, and the 1040 preparer can handle it appropriately.

If there's a specific state you're asking about, and a certain presentation that state prefers, tell me what output you'd like and I can suggest input. For Oklahoma, the adjustment is in Screen 45. For Kansas, Louisiana, and North Dakota, the adjustment is in Screen 43.

This is for an S-Corp in California that sold a treasury bond and received a 1099-INT in 2023. I just want to make sure that the interest is taxed federally and not on the state level. 

Thank you! You are awesome!