Sorry that I missed your point!
You can make more that one form 1099-INT entry for the same form 1099-INT. So, to include the taxable interest income on your state return, make a separate form 1099-INT entry for the amount of income taxable in Alabama, and don't indicate that it is tax exempt for your state.
You would do the same for the dividends.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
