In filling out my Federal return, the program downloaded my federally tax-exempt dividends from municipal bond mutual funds. I listed the amounts from my State, VA, and various US Possessions such as PR which are also tax-exempt in VA. When I go through my State return, it asks me to list the amount of Federally tax-exempt dividends I had entered on the Federal return. When I look at the worksheets for the State, if I enter that amount also on the State return, it looks like it is added back doubly, although the State return does not ask or allow me to account for the amounts that are tax-exempt in VA. I assume it is sufficient to address this only on the Federal return and not also on the State return which seems to duplicate this, as this seems to add to my State return the amount not from VA and the various US Possessions, correct?
