Exempt-interest dividends added to Ordinary Div?

[cas61]

My 1099-DIV shows $X in Box 1a for Total Ordinary Dividends and $Y in Box 12 for Exempt-Interest Dividends. On the Turbo Tax Deductions & Credits screen, the total Dividends on 1099-DIV equals Box 1a + Box 12 ($X + $Y). Is this correct? Shouldn't the exempt dividends be subtracted from the total dividends? When I further open the screen for that line item in Turbo Tax the entries match my 1099 Boxes 2a (Cap Gains Dist), 12 (Exempt Div), and 1a (Ord Div).

[rjs · Accepted solution]

No, exempt-interest dividends should not be subtracted from anything. The exempt-interest dividends in box 12 are separate, and are not included in the amount in any other box.

Don't worry about what the TurboTax summary screen shows. That's not what goes on your tax return. There is no "total dividends" entry on the tax return.

[jacob09jacob]

Why is exempt dividends added to ordinary dividends

[AbrahamT]

Although tax exempt interest is generally not taxable under the regular federal income tax, a portion of this income may be subject to state and local taxes and/or the federal alternative minimum tax.

For information on how to enter tax exempt interest, see HERE.

[rjs]

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@jacob09jacob wrote:

Why is exempt dividends added to ordinary dividends

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@jacob09jacob  When you say "exempt dividends" do you mean exempt-interest dividends in box 12 of Form 1099-DIV? Where do you see exempt-interest dividends being added to ordinary dividends? If you're talking about the Deductions & Credits summary screen in TurboTax that cas61 asked about at the top of this thread, ignore it. It doesn't mean anything. It's just showing you a total of amounts that you entered, but that total does not go on your tax return.