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In the Interview...On the followup page where it asks what state issued the dividends
.....the easiest operation it to go to the bottom of the states list and select "More than one state"
Why? 1099-DIV forms with $$ in box 11 are usually from Mutual Bond Funds that get tax-exempt income from a mixture of states....and selection "More than one state" is always acceptable.
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Other optional procedures ( if you do not live in IL, CA or MN):
You might be able to get some state tax reduction...IF...if you calculate the sub-amount in box 11 that came from your own state's bonds (and any US Territories). But you would have to calculate that amount yourself from documents each bond-fund publishes elsewhere.....an example of a breakdown for an NC resident is shown in the picture below.
BUT...Is it worth the effort ? Depends...you have to get the information and calculate it yourself for each fund you own.
Example: Say I have $1000 in box 11 from only one Mutual bond fund. The Fund documents say 2% came from my state (NC)...so $20 came from NC bonds, and if I break that out I save myself maybe $1 in NC taxes (NC has a 5% tax rate). Big whoop.
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