Getting asked by 1099-DIV, what state is the dividends are tax exempted from

[ThomasM125]

Income on state bonds are exempt from federal income tax and also typically exempt from state tax in the state they belong to. So, I believe you need know what state the municipal income is coming from to solve your issue.

[SteamTrain]

Unless you are willing to go thru the calculation to break out JUST the amount from your own state's bonds, you would select "Multiple States" for all of it.

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OR......

IF you are going to break out your own state's $$ then you check the selection that displays the extra boxes

  The amount actually from your own state's bonds would have to be more than ~$50 or $100 before it had much of an effect.   

(note, for a 1099-DIV, box 11, this is break down not allowed by Illinois, and CA & MN have severe restrictions on when it is allowed).

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