topic 1099 DIV BOX 12 exempt interest dividend for determining state exemption in Get your taxes done using TurboTax

1099 DIV BOX 12 exempt interest dividend for determining state exemption

FGYYDS — Wed, 19 Feb 2025 18:10:51 GMT

Hi everyone,

I have been researching about inputing the exempt-interest dividends state distribution on Turbotax desktop. I live in CA. I had $584.22 on 1099-DIV BOX12 and $74.88 on BOX13.

I am confused about inputing the page below,

For example all $584.22 is from one bond, supplement document below:

Shall I do math $584.22 x 5.74% = $33.53 ? Then entering $33.53 into Exempt-interest dividend amount for CA? Entering $550.69 for "Multiple states"?

But I saw on other post that California doesn't allow me to break out the CA dividend unless the bond fund contains at least 50% of it's assets in CA or US Bonds. For my above chart, CA is less than 50%.

Link: https://www.ftb.ca.gov/forms/2024/2024-540-ca-instructions.html#:~:text=Certain%20mutual%20funds,FTB%20Pub.%201001.

So what should I input for that page? Thank you for your answer.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

FGYYDS — Wed, 19 Feb 2025 19:17:16 GMT

Could an tax expert answer my question? Thanks.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

DawnC — Wed, 19 Feb 2025 19:19:12 GMT

Enter the full amount on one line/from one state, as multiple states.

The dividends/interest reported here won't be taxed on your federal return. However, most states tax dividends/interest paid by another state.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

ccarbon — Tue, 18 Mar 2025 20:37:31 GMT

I have an amount in Box 12 on the 1099-DIV and part of that is not taxable in my State. I have checked the box which says I have earned exempt income in more than one state, and then broke out the state portion that is exempt in my state and putting the rest in Multiple states. However the entire amount is flowing to my state return as exempt. This is not correct. I only want the exempt portion for my state to flow here. Please advise

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

RobertB4444 — Tue, 18 Mar 2025 20:52:59 GMT

You may have to overwrite the amount to get the correct amount to flow through to your state. When you go through the walkthrough it should ask you about the exempt dividends. You can enter the taxable amount manually at that point.

@ccarbon

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

ccarbon — Tue, 18 Mar 2025 21:05:56 GMT

As of now, I have overridden the number on the Form so it is the correct amount. However during the review for errors, it came up with a notice that a number was overridden. I didn't know if this would be a problem when e-filing. Just not sure why it is not flowing properly. I am doing the same exact steps I did last year as far as checking 'more than one state 'and then breaking out the amount for the dividends for my state and the remainder for multiple states.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

RobertB4444 — Tue, 18 Mar 2025 21:21:39 GMT

It isn't a problem for e-filing but overriding a number does invalidate the TurboTax 'accuracy guarantee'. As long as you are sure of the numbers and sure that they are entered correctly that shouldn't be a problem but it's worth a triple-check.

@ccarbon

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

ccarbon — Tue, 18 Mar 2025 22:12:22 GMT

Thanks for your help. Do you know why turbo tax is working differently than last year? I followed the exact same steps and the exempt numbers flowed correctly to the state return last year but not this year.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

baldietax — Tue, 18 Mar 2025 23:25:22 GMT

if you haven't tried it may be worth just inputting a fresh 1099-DIV to see if you can get it flow cleanly to state, without having to override things. in case something got messed up.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

baldietax — Tue, 18 Mar 2025 23:57:24 GMT

it could be this issue, not sure how this condition occurs but I've also seen it happen in forms mode.

https://ttlc.intuit.com/community/taxes/discussion/the-portion-of-tax-exempt-dividends-that-are-taxable-in-ma-is-not-carried-from-the-federal-return-to/00/3579149/message-id/1322573

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

ccarbon — Wed, 19 Mar 2025 09:28:49 GMT

That worked! Thanks so much.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

Susan28 — Thu, 10 Apr 2025 14:45:33 GMT

Where do I find that question in Turbo Tax, I have answered it but need to make a change, thanks

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

baldietax — Thu, 10 Apr 2025 14:47:08 GMT

edit the 1099 and it is covered in the interview question screens after the screen with the box amounts

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

maniemk — Sun, 22 Feb 2026 15:00:06 GMT

Could you be more specific? what walkthrough question? How to get to? Thanks.

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

PatriciaV — Mon, 23 Feb 2026 14:06:38 GMT

Follow the instructions in this article and check the box for tax-exempt dividends: Where do I enter my 1099-DIV in TurboTax Online? You will be asked for more information after you continue the interview.

Your state tax interview should have similar questions about tax-exempt income as you work through that section.

@maniemk

Re: 1099 DIV BOX 12 exempt interest dividend for determining state exemption

maniemk — Mon, 23 Feb 2026 15:01:09 GMT

Thank you. I had everything in correctly so it should have worked and I finally just deleted my PA taxes and then restarted them and it then populated everything right. I guess sometimes when you make a bunch of changes things get "hung up" or whatever! Thanks for your help!