How to enter the state question when entering the information for Vanguard long term tax exempt fund?

[augiedeg]

Turbo tax asks for the state when the dividends for the fund

[robtm]

For tax exempt mutual funds that are not state specific, more than one state, enter the MORE THAN ONE STATE option.

[SteamTrain]

....or for the "Online" users, you go to the bottom of the list and select "Multiple States".

But if you are not a resident of CA, MN or IL, (or not a resident of any of the sates without an income tax) you might be able to lower your state taxes some.

If you break down the $$ received from Bonds issued by your own State, and any US Territories (Puerto Rico, Guam etc), that can lower your state taxes.  But for a mutual fund, box 12 usually has to be a pretty big value to start with.

Example: If you had $1000 in box 12 of a 1099-DIV form, and all was from your single Mutual fund. IF the separate info from the fund indicated that 2% came from your own state's bonds, that's $20 from your state and $980 from all others.  If your state taxes income at ~5% for that $20, you saved a whole $1 in state taxes....big whoop!  And if other funds fed into the box 12 value on that 1099-DIV form, then you need to make the calculations separately for each fund.

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If you do decide to do a breakdown, you only specify your own state and any US Territories...all others are lumped together as a single "Multiple States" entry. Like below for an NC resident: