State tax filing

When the Exempt Interest Dividends are entered in your federal return and you use the screen 'Tell us more about your exempt-interest dividends' you select 'I earned exempt-interest dividends in more than one state'. Enter the amount that is earned through Pennsylvania (PA) sources. Then select 'Multiple States' for your second state and enter the remainder of the exempt-interest dividends.

Once the PA return is completed and you review your PA final summary of income you should see the correct total of taxable dividends less the PA exempt amount. In my test this proved to be true in TurboTax Online and TurboTax Desktop. See the image below for assistance.