How to calculate the government interest of ETF BIL ?

If the ETF BIL has a 98% of Income From Exempt Federal Securities in MA.

In Turbotax interest/dividend income, there's a place to enter US Government interest.

Enter the amount of dividends reported on this 1099-DIV from MERRILLLYNCH that represents interest from U.S. Government obligations.

If the total BIL dividend is $1000, what should i put in U.S. Government interest pls ?

1000*98% = 980 ?

1521

1 Best answer

Employee Tax Expert

Mar 4, 2025 8:27:17 PM

First, you will need to go back to the federal interview section to reach the 1099-DIV input section.

Select update/edit on the applicable 1099-DIV input screen.
Proceed through the screen titled, "Let's get the info from your 1099-DIV" by selecting Continue.
The next screen will ask "Do these uncommon situations apply?" Select the box to the left of A portion of these dividends is U.S. Government interest and select Continue.

On the next screen, you will see Enter U.S. Government interest. Enter the amount of U.S. Government obligations in this box.

Once you have made the entries above, proceed to the state interview section. Review the screens until you see "Here's the income that Maryland handles differently." There will be a line item that says Income from U.S. Obligations. If you click edit to the right of that section, you will see the following screen letting you know that your dividends from U.S. obligations have been subtracted from your Maryland income.

@Diego10ds

Expert Alumni

Feb 20, 2025 8:18:33 AM

Yes, the federally exempt portion would be 98% of $1,000 The remaining $20 would not be exempt.

New Member

Feb 23, 2025 8:18:21 AM

Thanks for your response. I have the same situation, but in Maryland, but I cannot find where to enter the exempt portion for the state in turbo tax. the 1099-DIV didn't address this.

I explore the tax section in turbotax, but I could not find where to enter the adjustment either.

Employee Tax Expert

Mar 4, 2025 8:27:17 PM

First, you will need to go back to the federal interview section to reach the 1099-DIV input section.

Select update/edit on the applicable 1099-DIV input screen.
Proceed through the screen titled, "Let's get the info from your 1099-DIV" by selecting Continue.
The next screen will ask "Do these uncommon situations apply?" Select the box to the left of A portion of these dividends is U.S. Government interest and select Continue.

On the next screen, you will see Enter U.S. Government interest. Enter the amount of U.S. Government obligations in this box.

Once you have made the entries above, proceed to the state interview section. Review the screens until you see "Here's the income that Maryland handles differently." There will be a line item that says Income from U.S. Obligations. If you click edit to the right of that section, you will see the following screen letting you know that your dividends from U.S. obligations have been subtracted from your Maryland income.

@Diego10ds

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How to calculate the government interest of ETF BIL ?