The law regarding U.S. Treasury income has not changed. Federal interest is exempt from state taxation. To enter exempt-interest dividends in TurboTax
- Type dividends in Search in the top right
- Click Jump to dividends
- Click Review next to the dividend that has U.S. Treasury interest
- On the screen Let's get the info from your 1099-DIV, check the box near the bottom My form has info in other boxes (this is uncommon)
- Enter your Exempt-interest dividends in Box 11. Continue.
- On Tell us if any of these uncommon situations apply to you check A portion of these dividends is U.S. Government interest. Continue.
- Enter the amount of U.S. Government interest. This will be subtracted from your state return.
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