State tax filing
The prompt to specify where the exempt-interest dividends was earned is in the federal side of TurboTax. If you go back to your 1099-DIV entry, there should be a follow-up screen titled, Tell us more about your exempt-interest dividends. This is two screens after you input the amounts from your 1099-DIV. On this screen, you will separate Colorado amounts with the remainder (you can mark the others as multiple states).
The amounts should flow correctly to your state return. In a mock return I created, the $700 in my example flowed to the DR0104 under Additions to Federal Taxable Income, Line 8. It does not tax the $300 marked as Colorado. Please see screenshots below for additional clarification.
