I received a 1099-DIV from Fidelity that has Exempt-interest dividends but the State row has no name. I live in CA. Should I enter CA?

[Padu]

Fidelity says I should consult TurboTax.

[Vanessa A]

You do not need to enter a state when entering the 1099-DIV.  However,  are these US obligations or another state obligations?  CA does not tax US Obligations nor CA state or municipal obligations, but if these dividends are from other states, they will be taxable income to CA. 

If they are from other states, when you walk through the CA return, you will be given the chance to enter other income that was not taxable for federal.  Here you would enter any exempt interest or dividends received from other states

[Mike9241]

go back to Fidelity. That was a stupid answer they gave you.  how is Turbotax supposed to know what state the dividends came from? it didn't do the investing Fidelity did.  don't be surprised if they can't tell you. Unless it is a California municipal bond fund, it's likely that at least some if not all of those dividends didn't come from California obligations. 

[Hal_Al]

Q.  I received a 1099-DIV from Fidelity that has Exempt-interest dividends but the State row has no name. I live in CA. Should I enter CA?

A. No. For simplicity, you should check  “I earned tax exempt dividends in more than one state” ("Multiple States" in the  online program) on the first screen after entering the 1099-INT or 1099-DIV. Then select  "More than one state" at the bottom of the state  scroll down list.

If your mutual fund company provided you a breakdown, you are only interested in your home state*. Multiply the % for your state by your total tax exempt dividends to get a $ amount (you can't enter the % in TurboTax [TT]). When asked which state, check the box "I earned tax exempt dividends in more than one state". In the drop down menu, select your state and enter the $ amount you calculated. In the 2nd box, select "More than one state*" (at the bottom of the scroll down list) and enter the remaining dollar amount.

*Most mutual funds will provide a breakdown. But you usually have to ask for it, or find it on their web site.

**Your state will tax all the dividends except the dividends from municipal bonds  from your state and US Territories.

Here's Fidelity's breakdown:

https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/taxes/2022-tei-by-year-supplement...

[SteamTrain]

@Padu 

ANNNND...if you read the details of the Fidelity footnotes, you will note that NONE of the funds listed held the required minimum CA Bond holdings, such that you are allowed to break out the CA $$ amounts.....thus, you must select "Multiple States" for all of the $$ on the Fidelity 1099-DIV form.   (It's the last selection in the State pull-down menu)

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CA, and MN require that the bond fund hold at least 50% of their holdings be in their own state's bonds, before you can break out that state's $$ for possible lower state taxation.  IL doesn't allow it at all.

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The same minimum does not apply to individual bonds you may own....but those $$$ would be in box 8 of a 1099-INT form.