Is it possible to deduct tax-exempt dividends on State tax return as well if some % of these dividends comes from my state?

I owned a Vanguard tax-exempt bond mutual fund that paid dividends in 2023. These dividends came from multiple states, including the state where I live (Illinois.) On 1099 form Vanguard indicated what % of the dividends came from the bonds issued in my state. Would it be possible to deduct the dividends that came from my state on my Illinois state return? If so, how can I do that in TurboTax?

586

Level 15

Mar 16, 2024 9:52:25 AM

no one can say without more information. for example, in Illinois interest on some of its municipals is taxed by the state while interest on others is not. so you would have to tell us the states, tell us your resident state, and provide a breakdown of interest by obligation. Such information may not provided by some funds

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Is it possible to deduct tax-exempt dividends on State tax return as well if some % of these dividends comes from my state?