Take a look at Box 3 of your 1099-B. This is the box that reports income that is excludable. Is there something in that box?
Taxation of interest
When you receive a 1099-INT, you’ll need to understand what each box of the form is reporting, so that you can report your interest on the appropriate lines of your tax return:
Box 1 of the 1099-INT reports all taxable interest you receive, such as your earnings from a savings account.
Box 2 reports interest penalties you’re charged for withdrawing money from an account before the maturity date.
Box 3 reports interest earned on U.S. savings bonds or Treasury notes, bills or bonds. However, some of this may be tax-exempt.
Box 4 reports any federal tax withheld on your interest income by the payer.
Box 8 relates to interest-bearing investments you hold with state and local governments, such as municipal bonds.