Tax Exempt Dividends - TURBOTAX DESKTOP

Forum|Forum|6 months ago
March 24, 2026
1 reply
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I have this problem every single year.

I know how to calculate the $ amount to allocate for my State, CA, since the investments don't seem to change & the same 2 funds are (way) over 50% CA Bonds, high 90%. Therefore, I allocate the remainder by subtracting the amount for CA from the Total Tax Exempt Divs & indicate "various States".

Problem: I never understand what they want when it comes to % asked in Box 12 (b). Are they asking what % of 100% applies to CA vs other states? Turbotax can't do a simple calculation by dividing the CA figure by the total Tax Exempt & then subtract from 100% to enter remaining % for various States (US Gov)?

Are they asking for exact % of CA Bonds by averaging the funds to calculate = approx 97%; then separately, same sort of calculation for me to look up EVERY SINGLE BOND to see what % US Gov?

I mean they wouldn't be reported as US Tax Exempt if they didn't qualify... so why on earth does that matter? There so many of them and unfortunately, they are not reported to me, only the CA State % are provided to me.

Mike9241

Level 15

you enter the total on line 12. Then, in the first row, enter the resident state and either the percent or the amount. it computes the other

It's probably not programmed to perform the subtraction because perhaps you have multi-state filings. it may not be 90%/10% but perhaps 90%/6%/4%

don't know about CA, but in some states it gets complicated like IL. There are only certain IL tax-exempt dividends that can be excluded for IL income tax purposes. Even entering IL and 100% does nothing. There is a special schedule that has to be completed to subtract excludable dividends.

Mike9241