To enter dividends from these securities:
- Go to the Federal > Wages & Income > Interest and Dividends > Dividends on 1099-DIV section of your return.
- You may enter the 1099-DIV as it appears.
- After entering it, in the Tell us if any of these uncommon situations apply to you select A portion of these dividends is U.S. Government interest
- Enter the amount
You will not be taxed on the TIPS dividends by your state.
