OK -- I think I figured it out...
To resolve this problem, you must override Turbotax entries on the Federal 1099-DIV form.
- Turbotax automagically entered "NH" as the state where the funds were earned.
- I am a resident of NH, but this entry is incorrect: The Municipal funds were not earned in NH.
- As a result, they are FED tax exempt but not NH tax exempt.
- I manually added/overrode the following Fed 1099-DIV entries to resolve this:
- In Box 11, entered "XX" for the state entry to state these funds were NOT earned in my state of residence (NH). Box 11a = "XX", Box 11b = "100" (pct of funds earned there), Box 11c = the original exempt amt.
- At the bottom of Box 11, entered "XX" again for "State where dividends were earned"
This resulted in Turbotax NOT placing the same funds as "tax exempt" on the New Hampshire DP-10 form. No turbotax blank/errors and no efile errors.
Hope this helps someone...
