Get your taxes done using TurboTax

 It depends. This question will appear under uncommon situations where it asks if a portion of these dividends are US Government Interest? You will check this Box and then the next screen will ask for the amount of US Government interest. See the two screenshot below that illustrate this feature.

To report this amount you would take the total dividends reported in Box 1a of your 1099 DIV and multiply it by .5508.  For example, if you received $1,000 in total dividends from the "Fidelity GOVT MMKT" fund, you would calculate the US government interest as  $1,000×0.5508=$550.80.  This get reported as $550.80 as US government interest.