Hal_Al
Level 15

State tax filing

You get the state breakdown from your mutual fund company. If they did not provide a breakdown,  in the federal section you check the box “I earned tax exempt dividends in more than one state” on the first screen after entering the 1099-INT or 1099-DIV. Then select  "More than one state" ("Multiple States" in the  online program) at the bottom of the state  scroll down list.

If your mutual fund company provided you a breakdown, you are only interested in your home state*. Multiply the % for your state by your total tax exempt dividends to get a $ amount (you can't enter the % in TurboTax [TT]). When asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state" (at the bottom of the scroll down list) and enter the remaining dollar amount.

 

These amount will transfer to the state return. There will not be a place to enter them in the state interview.

 

*Your state will tax all the dividends except the dividends from municipal bonds  from your state.