If you don't know the states, leave the special handling box unchecked. Or you can select Multiple States if you:
- Live in a state with no income tax (AK, FL, NV, SD, TN, TX, WA, WY)
- Live where exempt-interest dividends from other states aren't taxed (DC, IN)
- Have only a small amount of exempt-interest dividends and aren't concerned with extra state tax
Your state will tax these dividends or interest if you don't live in an area listed above.