You really only have to separate out the states and territories that are exempt from taxation in your state. I don't know what state you are in, but every state exempts its own bonds from taxability, as well as those from U.S. territories. It looks like T Rowe Price has holdings in Guam, Northern Marianas, Puerto Rico, and USVI. Those are all exempt in your state.
So I would do the math to figure out the exempt amount in your state and lump the rest into Multiple States:
- Enter the 1099-DIV as it appears, presumably with an amount in Box 11.
- Answer Tell us if any of these uncommon situations apply to you.
- Answer I earned exempt-interest dividends in more than one state. Do the math to figure out the interest earned in your state and the territories mentioned above
- For the other 49 states, select Multiple States all the way at the bottom of the pull-down menu. Enter the exempt-interest amount here as the total reported in Box 11 minus the exempt interest from your state and the other territories you already reported. This will make it add up to 100%
The interest reported as multiple states will be taxable on your state return, assuming you live in a state that taxes dividend income. It doesn't really matter which state they come from because they're all taxable by your state and not taxable federally. This will be an addition to your federal income.
The interest reported from your home state and U.S. territories are not taxable and will not be added to your state income.
For what it's worth, I wouldn't consider this a bug in TurboTax as there's no reason you should be able to add up to more than 100% of the exempt-interest dividends reported. I would consider it a quirk of how T Rowe Price reports it. But maybe I'm biased.
