TurboTax is stating that "We noticed you received exempt interest from state obligations." What is this referring to? I've never had this come up before.

[austin_schlatter]

I do not recall having anything done out of state.  Unless this could possibly be referring to interest gained from my checking account?

[MayaD]

Did you receive form 1099-DIV with an amount reported in box 11?

Exempt-interest dividends are interest dividends paid on municipal bonds that are not subject to federal income tax and are usually exempt from state tax by the states where they are issued.

[austin_schlatter]

I did not, however I did receive a 1099-INT from my bank.

[AmyC]

A 1099-int could have exempt interest in box 8 or you could have marked a special situation. You need to go back to your 1099-int and double check your entries. Follow these steps:

1. Return to the federal income section
2. Scroll down to investment income
3. Select 1099-INT and edit
4. Select Edit next to the interest amount
5. Box 1 information shows, the box under the bank name is NOT checked
6. continue
7. Tell us if any of these uncommon situations apply
8. select None of these apply
9. Continue