Let's double check you entered the 1099-DIV correctly.
- Please return to your federal income
- Select the 1099-DIV causing concern
- Proceed through the entry screen
- Uncommon situations? Select None
- Continue
- Select more than one state box
- Enter your state and the exempt amount
- Enter the other states and their amounts or select more than one state and the rest of the money that is exempt.
1) Easy selection, if you don't want to do a lot of calculations, is to go to the very bottom of the list of states and select "Multiple States" (or "More than one state" if using Desktop software) (yeah, I know it's not one state, but is allowed.)
OR..you can do the following (though it is not required)
2) IF box 8 $$ on a 1099-INT (or box 12 on a 1099-DIV) is a large number.....soemtimes you can get some reduction in your state taxes (if you live in an income-taxing state only), by breaking out $$ from your own state's bonds (& any US territories), from all the rest of the $$. You check a checkbox under that main dropdown, and you'll see multiple boxes to break out your state's $$ from the rest. See pictures below on how it is done:
3) Note: if tax exempt $$ were in box 12 of a 1099-DIV, CA & MN have severe restrictions on when the breakout is allowed. IL doesn't allow it at all, i.e. must be selected as "Multi[ple States". Tax-Exempt $$ in box 8 of a 1099-INT can be broken down by all though.
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How?
Desktop software:
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Online software:
