Thanks for the reply.
Box 1b is checked for both tax years 2020 and 2021. So, I don't know why Exempt Dividends are added to Ordinary Dividends in 2021 but were not added in 2020. I haven't been able to find info in TurboTax (or the IRS) about whether Exempt Dividends should be included in "Dividends on 1099-DIV" under "Interest and Dividends" section in TurboTax Step-by-Step.
However, after looking at Schedule B (Form 1040) Interest and Dividends, line 5 shows only Ordinary Dividends and their total on line 6 which is what gets entered on line 3b of Form 1040. It appears that the Exempt Interest Dividends get reported on line 2a Tax-Exempt Interest on Form 1040.
So, even though TurboTax Step by Step shows Ordinary and Exempt Dividends as a total amount under the Interest and Dividends section, they get reported on separate lines on Form 1040.
