How to enter multiple states for tax-exempt dividends

[apt63]

Using TurboTax Premier 2025 on desktop PC. How do I enter multiple states for tax-exempt dividends?

https://ibb.co/wFG9Grjj

[ThomasM125]

After you enter your Form 1099-DIV, you will see a screen that says Tell us more about your exempt-interest dividends. You need to check on the option that says I earned exempt-interest dividends in more than one state. You will then see an option to enter dividends in more than one state.

[amt_blues]

Thanks. I should have clarified that I was "guided" and imported everything. I did not manually enter the 1099-div. 

[ThomasM125]

You need to edit your 1099-DIV entries that were imported. Go to the Wages and Income section in the federal portion of TurboTax. Find the Interest and Dividends section and choose the Dividends reported on Form 1099-DIV option. On the next screen you will see your interest and dividend entries listed. Click on the down arrow next to the one that has the US government dividends listed and choose the edit option. That will bring up the dividend entry screen and on the next screen you will see the questions regarding interest on US government securities. Choose that option and on the next screen enter the US government interest that will then be tax-exempt on your state tax return.

[SteamTrain · Accepted solution]

@apt63

Looking at the picture you posted!!!

Scroll to the bottom of the list of states...."Multiple States" is the last choice listed.

[apt63]

Thanks, OMG! Why didn't they put "Multiple States" at the top of the list???

[SteamTrain]

@apt63 

Yep...that would be really sensible, but no one knows who controls these things.  You'd think a software manager would realize that is the most-used sensible place to put it.

[dabearbady]

In previous tax years, you could choose "Multiple States" and hit Continue without entering an amount of exempt dividend income for any particular state, but for the current version of 2025 TurboTax, that definitely does not work--I tried it. You MUST select one actual state (normally you'd choose your home state) and enter an amount of tax-exempt dividends for that state. Then you are allowed to choose Multiple States and enter the balance, and whatever two or more amounts you enter on that screen has to add up correctly to the total. Otherwise you are not allowed to proceed and get the dividends area of your return marked as completed. It's a real time-wasting nuisance this year, because at least in my case, and I expect many others, it will make no difference in federal or state tax due, because for most taxpayers, the amounts are too small to matter.