how does it show up on the 1099? since the company filed form 8937 it should show up in box 3.
if they used box 1 it should issue corrected 1099's. the company should have filed 8937 with the IRS.
so that leaves several possibilities
1) don't enter the dividend if box 3 used (this absolutely proper). if box 1 and you get an IRS notice wryte back enclosing the notice and include a letter saying enclosed is form 8937 from xxx that reported the dividend as non-taxable.
2) on the 1099 input form - don't know if you can access it - use the adjustment section check box H - only enter the div on line 1
3) use the other income form line 22 and enter something like xxx Corp dividend non-taxable per form 8937
and enter the dividend amount as a negative number.
4) paper file and enclose form 8937 - this probably won't work because not be a standard form that's part of a 1040 the clerk entering your return will probably just throw out the form
