Where do I enter MN tax-exempt interest of Federal Securities on MN Tax form??

OK....if these are from actual Mutual bond funds you own?   Correct...not in box 12.  Box 12 is only for tax exempt Muni funds.

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For a 1099-DIV

You need to use the supplemental data, and calculate the exact $$ amount that came from US Govt Securities for that particular fund.   Usually, these will only be for Bond Funds, or Money market funds.

For instance, if you might have a MMarket Fund that issued $1000 of box 1a ordinary dividends, and 30% of those $$ were from US Govt securties....that's $300.

You do that for each fund that held some known % of US Govt securities, and add those sub$$ amounts together.

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Then, you enter the 1099-DIV, just as shown on your Paper/PDF of 1099-DIV,  "Continue" to the next page, and there is a checkbox where you check "A portion of these dividends is US Government interest"

"Continue" to the next page, and there is a box to enter the US Govt subtotal you calculated, and those $$ will not be included as state income.

Then continue thru the rest of any pages for that form (shouldn't be any...unless your 1099-DIV did have some box 12 $$)

Save a sheet with your individual fund calculations in your tax file folder.....so you can see later what you calculated and how...should it become necessary later to show those calculations.