How do I answer the question "choose the state your tax-exempt dividends came from" when you have no way of knowing.

[IreneS · Accepted solution]

If you have no way of knowing what state the tax-exempt dividends came from, Select More than one state from the drop-down list on the screen (it's at the bottom of the list).

[Zbucklyo]

Most mutual fund companies provide supplementary material on their tax-exempt funds which details the percentage of interest that comes from each state (tax-exempt interest earned in a state is not taxable by that state, so this is generally only for your home state).  You can then split the interest into two pieces - your home state, and 'More Than One State'.

Let's say you live in California, you earned $1,000 in tax-exempt interest and the supplementary material indicates that 20% of the interest is from California.  You report $200 in CA interest and $800 in 'More than one state'.