State tax filing

Yes, you must figure out the percentage of dividends for each fund that is considered government bonds by using the percentage provided by the financial agency.   Once you figure out the amount, then that amount will not be taxable to your state.  The amount entered in the federal program should carry to your state as nontaxable. Likewise you must figure out any percentage that applies to municipal bonds if you have tax exempt interest dividends in box 12.

Every state has a slightly but similar interview, watch the screens for any question relating to the bond interest.

1099-INT:

1. Open (continue) your return if it's not already open.
2. Inside TurboTax, search for 1099-INT and select the Jump to link in the search results.
3. Answer Yes to Did you receive any interest income?
   • If you see Here's the interest we have so far, select Add interest income.

1099-DIV:

1. Open or continue your return.
2. Search for 1099-DIV and select the Jump to link in your search results.
3. Answer Yes to Did you receive any dividend income?
4. Choose your bank or brokerage from the list to import your 1099-DIV and select Continue or manually enter your 1099-DIV  by selecting I'll type it in myself.
5. Follow the on-screen instructions to enter your 1099-DIV.

Your state will not figure it out for you. See the images below for the dividend section.