Thank you for the reply. After some more analysis, I learned that the program was not carrying one of my multi-state entries to the state tax form. When I had originally entered it, I tagged it as my home state mistakenly then corrected it in the edit process. For some reason, the program still flagged it as my home state even though I had changed it. In the end, I deleted the amount from the 1099-DIV that I had imported, saved it, then added the amount back with the multi-state entry. The effect was all of the tax exempt dividends carriers over to the state return, which is what I expected.
My previous CPA used some industry database which would take the 1099-DIV information and calculate a % that was from my home state, and thus not taxable there. My original question was thinking the program did something similar, but in fact, it was simply an error which I had to work around. Thanks.
