1099-DIV (SGOV/SPAXX) Exemption Question – FreeTaxUSA

Filing my California return using FreeTaxUSA and need a quick sanity check on my 1099-DIV entries.

• Total Ordinary Dividends (Box 1a): $891.98
• Fund Breakdown (from Supplemental Info):
  • SPAXX (Fidelity Govt Money Market): $17.54
  • SGOV (iShares 0-3 Month Treasury): $874.44

My Logic for California:

• Question: "Does your dividend income include U.S. Government interest income?"
• Answer: Yes (because of SGOV).
• Follow-up Question: "Enter the amount of your $892 of ordinary dividends that are from U.S. Government interest:"
• My Entry: $831.94 (Calculated as 95.14% of the $874.44 from SGOV).

The Reason: I am treating SPAXX as $0 for the state exemption because it usually fails California’s "50% Asset Test" (due to Repurchase Agreements). Since SGOV holds almost 100% Treasuries, it easily passes the test and allows the state tax exemption to "pass through."

The Question: Is it correct to only claim the SGOV portion for the California state exemption while treating the SPAXX portion as 100% state-taxable?

Thanks for the help