Q. My form does not list a state. What do I do?
You get that state break down from your mutual fund company. If they did not provide a breakdown, you check the box “I earned tax exempt dividends in more than one state” ("Multiple States" in the online program) on the first screen after entering the 1099-INT or 1099-DIV. Then select "More than one state" at the bottom of the state scroll down list.
If your mutual fund company provided you a breakdown*, you are only interested in your home state*. Multiply the % for your state by your total tax exempt dividends to get a $ amount (you can't enter the % in TurboTax [TT]). When asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state*" (at the bottom of the scroll down list) and enter the remaining dollar amount.
If you don't want to mess with it, it is perfectly acceptable to assign the entire $$ amount to the single designation of "more than one state” / “Multiple States"
*Most mutual funds will provide a breakdown. But you usually have to ask for it, or find it on their web site.
**Your state will tax all the dividends except the dividends from municipal bonds from your state and US Territories. In Illinois, only certain types of bonds are state tax-exempt.
If you can't find the breakdown (or you don't want to make the effort to look; it's no big deal. The percentage for any particular state is usually small. Here's Fidelity's (for an example) https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/taxes/2023-tei-by-year.pdf
