Where do I enter the exempt interest from my state, so it will not be taxed by my state?

[nslacks]

Where do I enter the exempt interest from my state, so it will not be taxed by my state? This is a simple question, please answer it.

[ToddL99]

If you  received a Form 1099-DIV with an entry in Box 11, you had tax-exempt dividends.; enter these in the Dividends on 1099-DIV interview of Interest and Dividends.  (The same situation applies when you have a Form 1099-INT with an entry in Box 8).  

• In order to enter them in the 1099-DIV interview, you need to check the box "My form has info in more than just these boxes (this is uncommon)." I've attached a screenshot showing where this box is located. 
• If you enter an amount in Box 11, a few screens later the program will ask you "Tell us which state your $ XXX.XX of exempt interest-dividends came from." You have to make an entry here. In most cases, you will choose "More than One State" from the state-drop-down menu (last choice). That is because the investment fund that sent you the Form 1099-DIV has tax-exempt interest dividends from more than one state. 
• Unless you have specific information on what state/s the tax-exempt interest dividends came from, use the "More the One State" entry. Sample screenshots are attached. 
• 

[SteamTrain]

@ToddL99 

Please update your file and response.   

On a 1099-DIV, tax-exempt dividends were moved to box 11 several years ago...so box 10 no longer applies.

[ToddL99]

Thanks!

[SteamTrain]

@ToddL99    Yeah, I have some older prepared responses I have to constantly check into too. 

And now the IRS has changed the state box numbers on 1099-R forms this year. 

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@nslacks 

IF you DO happen to have the information about what sub-$$ amount of box 11 came from your own state's bonds...you just break out your own state, and any US territory bonds (like Puerto Rico) and the remainder is just lumped all together as "More than one state" (Desktop software) or "Multiple states"  (Online software)  in the follow-up page after the main form.

(tax-exempt interest in box 8 on a 1099-INT is handled similarly)

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CA and MN have severe limitations on whether you can break out those states amounts from box 11 on a 1099-DIV,  and Illinois doesn't allow it at all for box 11 on a 1099-DIV.

They all allow it if the exempt-interest is reported in box 8 of a 1099-INT, but you have to use the form that the fund/brokerage issues

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Example for an NC resident:

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