TurboTax will handle this automatically for dividends entered from Box 11.  Those will be free from federal tax, but only from state tax where appropriate based on your entry on the state tax screen.  

Be sure to allocate the dividends to the state in which they were earned which may differ from your residence state.  

The state dividend selection screen should look similar to this:

Sorry.....I can't seem to locate the screen you cite. It does not appear to be the PA dividend worksheet or included as a step-by-step form.  

To review my issue..... I am wanting only to exempt a small portion of a mutual fund dividend which comes from Pennsylvania. The remainder is attributable to various states. I think I recall having filled in this percentage amount excluded from state tax on a Federal form. Yet, when I review the PA worksheet for dividends , the amount is left blank, suggesting not taxable. I don't know why the taxable amount did not flow through from the Federal worksheet.

I appreciate your assistance. No doubt I am trying to make a simple matter more complex by trying to squeeze out a bit of a deduction on state taxes. Thanks in advance for any further help. 

When I click on edit, a form opens for an adjustment. Do I fill out this form?  If I need to fill out this form, then what amount do I list for adjustment? Is it the portion amount taxable in PA or not subject to PA tax? 

Thanks! I finally realized that the correct information did transfer to my PA form! I was misled by the fact that Adjusted Dividend Income and Dividend Income Summary form did not seem to reflect this. I realize that I do not have to fill out this form. 

I do have a remaining question.... When I input the percentages of dividends derived from different states on Line 11 of the Dividend worksheet, is it correct on the second line to input XX for state as there are multiple. 

Again, thanks for your kind instructions.

 Are the dividends entered in Box 11?   If so the screen to allow you to allocate to states, including multiple states or "various", comes after the dividend entry screen in the interview.  You will allocate the necessary amount of the dividends to PA and the remaining amount to "Various" as the state.     If they are not entered into this box, the state allocation screens do not appear.  These screens are in the Federal section of TurboTax.