List two states for the question about exempt income from states—your Home State and Multiple States. Exempt-interest dividends connected with your state are nontaxable on your state return. The other exempt-interest dividends are tax exempt for federal but are added back on your state return.
Click here to find your state tax free percentage.
To enter into TurboTax:
- Type dividends in Search in the top right
- Click Jump to dividends
- Click Review next to the dividend that has a state tax exempt portion
- On the screen Let's get the info from your 1099-DIV, check the box near the bottom My form has info in other boxes (this is uncommon)
- Enter your Exempt-interest dividends in Box 11. Continue.
- On Tell us if any of these uncommon situations apply to you check I need to adjust these dividends or this is an ESOP distribution
- Select I need to adjust these dividends. Continue.
- Skip Tell us about your dividend adjustment
- On Tell us more about your exempt-interest dividends
- select I earned exempt-interest dividends in more than one state and enter the amounts for Your State and Multiple States.