Dividend income from US securities isn’t taxable in Virginia - how do you fill out form to not get taxed?

Good afternoon!

I see how this works if the government securities income was interest income you received showing up on your 1099-INT. In my case, the government securities income I received was paid to me as dividends, not as interest, so it shows up on 1099-DIV. How do I make sure I am not taxed for the government securities on my Virginia tax return? There must be a question in the Virginia tax interview that I am supposed to answer.

thank you!

2229

Level 15

Mar 8, 2025 1:54:38 PM

@Anothercrisis

Edit the 1099-DIV again in the Federal area.

On a page AFTER the main form with all its boxes, is a page that asks/says:

"DO these uncommon situations apply?"

You need to check the box for:

"A portion of these dividends is U.S. Government interest"

Then hit the "Continue" and you will enter the $$ amount that was from US Govt. interest/dividends.

That info then transfers to VA appropriately.

Returning Member

Mar 8, 2025 3:26:53 PM

Thank you, I appreciate your response.

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Dividend income from US securities isn’t taxable in Virginia - how do you fill out form to not get taxed?