In California, HSA interest, dividends, and capital gains are taxable. EasyStep allows you to enter each of these 3 individually and they get added to your CA income. I understand how to do that part. However, in my case I have dividends attributable to a treasury mutual fund that gets 80% of its dividends from "government obligations", and therefore 80% of these dividends are exempt from CA state income tax. How do enter this in TurboTax? Do I simply reduce the dividend amount I enter to 20% of the actual amount? And just to be clear, there is no 1099-INT, and therefore no box 3 entry to make all this work automatically.
