Do I need to enter state-specific exempt interest dividends for 1099-DIV? This information does not import and its minor (less than $1 on average per state).

[JotikaT2]

It depends.

Did you make the input in the federal interview section of the program or only in the state interview sections?

Be sure to enter the overall amounts in the 1099-INT or 1099-DIV section of the federal interview depending upon what form your tax exempt income is reported on.  

You will have a screen that allows you to break it out by state.  As long as you break out the amounts for the state returns you are filing in, you will be okay.  Be sure to enter the rest as being from Multiple states.  This will be the last option when you select your state return.

When you get to your state return(s), you may have to enter your state specific information here as well.  

[64dancer]

I have entered my state-specific exempt interest dividends, but cannot figure out where to enter the "WI Interest from State and Municipal Obligations". As a result, my Smart Worksheet does not have anything on "line a". Only the tax-exempt amount on "line b".

Tried finding a related topic (see below), but this person has the opposite problem. Their "line a" is correct and "line b" is blank.

Where do I enter line a info?

Why is the Wisconsin-specific interest included in Wisconsin state tax form?

by marks818•4•Updated January 05, 2022

On my Wisconsin state form Schedule AD, the State and Municipal Interest is not being reduced by the Wisconsin-specific interest earned. The Smart Worksheet shows the correct number on line a) (Interest earned on Wisconsin state and municipal obligations), but it shows 0 for line b), (Wisconsin state and municipal obligations exempt from both federal and Wisconsin tax), which is the "exempt" amount. How do I reduce the State and Municipal interest by the Wisconsin-specific interest that was earned?

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Best Answer

by marks818

Under the Income section of the Wisconsin state form, TurboTax has this option:  "WI Interest from State and Municipal Obligations".  This option listed the correct dollar amount in the margin, but did not apply it by reducing the income by that amount.  I discovered that one has to click on the Edit button for that option and then type in the amount that is deductible.  By default, TurboTax assumes $0 is deductible.  Once I entered the correct amount, the income total reduced by that amount.

[AmyC]

The line a amount is pulling from the federal. After you entered the 1099-DIV, you had to select the state and amount. Please return to the federal section and enter the state and amount.

@64dancer

[64dancer]

I don't have that question at all. I am using the online premier version. I went back to the 1099-DIV. After entering the 1099-DIV, it asks for Uncommon situations. I checked U.S. Gov't Interest and entered the value. It then asked about Foreign Dividends and I checked Mutual Fund/RIC. It then asked about the Exempt-Interest Dividends. I checked More than 1 state. I entered WI & Multiple and entered their values. Then it was done with Dividends.

[64dancer]

Lat year I used the downloaded version. Maybe that's why it worked for me last year. My computer is too old to upgrade to the software needed to run Turbo Tax anymore, so I am stuck using the online version. I do not have the same tabs across the top as you are showing in your photo.

[DianeW777]

TurboTax does allow you to select the state where the tax exempt interest dividends are from.  The screen is very similar to the one in this thread. The TurboTax Online image is posted here for your to see.

1. Complete your entry of your 1099-DIV (or import)
2. Continue two screens and you can make your selection
3. If you have more than one state be sure to select that  
   1. As example you can use this to enter the correct percentage that applies to your state and then Multiple States for the balance.

[64dancer]

On that screen, I selected more than one state . I put my $14 in WI and the $7,135 in Multiple States for a total of $7,149. Nothing appears on the WI Smart Worksheet on line a.

So, I created a new 1099-DIV and re-entered all the information just as I had with the original 1099-DIV. This time it worked. I looked at my Smart Worksheet for WI and it has the correct $7,149 on line a. It has the correct $14 on line b and the correct $7,135 on line c. Not sure where the original 1099-DIV went.  On my WI for ! SCH AD, it has 7,149 + 7149 - 14.  So, it brought over the 2nd 1099-DIV correctly and old 1099-DIV incorrectly. I am going to delete the old one and keep my fingers crossed that it all works. Have to run to eye doctor. To be continued...

[64dancer]

Well, things were not correct when I deleted the original so I started from scratch.

I deleted my 1099-DIV a 2nd time and went back through the questions to see what I was missing. I just happened to enter Wisconsin FIRST this time and Multiple States SECOND and voila, it worked. The correct number went to line a on the Smart Worksheet and the correct number carried forward to my WI Form 1 Schedule AD. In 2020, I must have just done that the first time around and that was why I didn't have any problems. I have now made a note to do this from now on. Order shouldn't matter, but I guess it does in Turbo Taxes software - at least for the online version.

[blondiesorganic]

My 1099-div form only lists percentages by state, not the dollar amounts. I have a call in to my advisor about this but I just spent an hour figuring out the percentages per stated of the total dividends only to have the program crash at New Mexico and lose all the data! Is is ok to put percentages instead of dollar amounts? Will the program allow for this?