topic There is an error when entering tax exempt dividends. The dividends are added to my taxable income. Thus the tax exempt dividends are taxed. Thanks, Scott in Get your taxes done using TurboTax

There is an error when entering tax exempt dividends. The dividends are added to my taxable income. Thus the tax exempt dividends are taxed. Thanks, Scott

sb_cain — Wed, 11 Feb 2026 04:17:43 GMT

DavidD66 — Tue, 06 Feb 2024 23:16:47 GMT

What box/line number on your Form 1099-DIV are your "tax exempt" dividends reported in/on?

sb_cain — Mon, 12 Feb 2024 21:37:59 GMT

Box 12

RobertB4444 — Thu, 15 Feb 2024 20:57:52 GMT

That's the correct box. And the system should be adding the amount to the forms but not as taxable income.

Make sure that you are entering the numbers into the 1099-DIV form and not one of the other entry screens.

And just to clarify - are these dividends increasing the tax on your federal return or state return? Some states have weird rules.

SteamTrain — Thu, 15 Feb 2024 21:31:44 GMT

AND,,,if you are retired and also getting Social Security Benefits

...the entry of Tax-Exempt $$ Can make more of your Social Security $$ taxable.

SO it could be that effect,