Someone else had this issue, where they had apparently put in CA as the one state...in the top bullet point, on the follow-up page that asked about what state's the distribution of tax-exempt dividends came from...then selected the second bullet point (Multiple States) to do the breakout of CA $$ from everything else.
The problem can be traced to the first bullet point....THAT selection needs to be set to Multiple States and Not CA.
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Easiest Fix if one uses desktop software, is to switch to Forms Mode......open the 1099-DIV where you do the CA exempt dividends break-out...go to the very bottom of the box for box 12, there is a line labelled "State where the dividends were earned Postal code..." Set that to "XX" and then the data from the breakout boxes should transfer to CA forms correctly.
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IF using the "Online" software, the fix is more involved.
Edit the 1099-DIV, and when you get to the page which asks where the tax-exempt dividends came from
1) Write down your breakout $$ values of CA, and Multiple States.
2) Edit it to put in just one total entry for all of it being "Multiple States".
3) Continue thru any pages that follow until you back out to the display of all the 1099-INT and 1099-DIV forms.
4) Edit that 1099-DIV again, and when you get to the page which asks where the tax-exempt dividends came from...
5) Select the top selection point, and make sure it is set to "Multiple States" . IF it isn't already, scroll to the bottom of the list of states and select "Multiple States".
6) NOW...select the second bullet point, and enter your CA, and Multiple States $$$ amounts in the boxes provided.
That should fix it.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
