This question regards filing my California tax returns
I invest in a few Vanguard funds (VTSAX, VTIAX, VTTSX), and box 12 (Exempt-interest dividends) of my 1099-DIV reads 0 dollars.
However, I get a question in my California tax returns indicating that I have exempt-interest dividends of $179. I recognize this number from my federal return, where I calculated the amount of dividends that came from U.S government securities.
Correct me if I'm wrong, but just because I made $179 in dividends from U.S government securities DOES NOT mean that these are exempt-interest dividends.
Here's the full question from Turbotax...
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Tax Exempt Interest and Dividends
U.S obligations exempt-interest dividends of $179 transferred from your federal return.
Are any of these dividends from funds with less than 50% of their assets invested in California and U.S. obligations?
- Yes
- No, all funds are 50% or more invested in California or U.S. Obligations.
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If I select 'Yes', Turbotax proceeds to ask "Enter Less Than 50% Exempt-Interest Dividends" and provides a text box to enter an amount.
How should I answer this question when my 1099-DIV does not indicate that I had any exempt-interest dividends? It's strange that I'm receiving this question when it doesn't seem like it applies to me.
