1. The Dividends should have carried over to your CT Tax Return. Have you checked all entries on your 1099-DIV to make sure they were entered correctly into TurboTax as per your Form? Try deleting Form 1099-DIV and reentering it.
In addition. carefully go over all of your interview questions that you encountered after initially entering your Form 1099-R and the Interview questions in your Connecticut pertaining to your dividends.
2. In rare situations, in TurboTax an addition to Connecticut income is required for any interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the U.S. which federal law exempts from federal income tax but does not exempt from state income taxes.
The adjustment for the Dividends that need to be added to your CT return would be entered as an "Addition to Income"
Schedule 1 (line 38) of your Connecticut State tax Return, would be where you would add these Dividends that were not included in your Federal Income, but should have been applied to your Ct income.
Click here for additional information on CT Additions and Subtractions.
As far as reporting the Dividends on Connecticut Securities that exempt from CT Tax, they should have been reported on your Federal return and then in a perfect world they would be be properly excluded from your CT State Tax Return via the input of your Form 1099-DIV. They would not be a "subtraction" to your CT income because they were also not included in your Federal AGI.
Per (page 23) Line 32: Exempt-Interest Dividends From a Mutual Fund Derived From State or Municipal Government Obligations Other Than Connecticut Enter the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-Connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands.
Example: A fund invests in obligations of many states including Connecticut. Assuming that 20% of the distribution is from Connecticut obligations, the remaining 80% would be added back on this line.
Click here for instructions to Ct State Tax Return Form CT-1040.
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