I have dividends from Treasury Inflation Protected securities. This is taxable at federal level but exempt at state level. How can I enter this in TurboTax?

To enter dividends from these securities:

1. Go to the Federal > Wages & Income > Interest and Dividends > Dividends on 1099-DIV section of your return.
2. You may enter the 1099-DIV as it appears.
3. After entering it, in the Tell us if any of these uncommon situations apply to you select A portion of these dividends is U.S. Government interest
4. Enter the amount

You will not be taxed on the TIPS dividends by your state. 

IF you are holding TIPS yourself....the interest should be reported to you, and also in the tax software as box 3 $$ on a 1099-INT. 

Those $$ are then automatically excluded from State income by the software.

__________________________
If you hold TIPS in a Treasury Direct account, the you must log into your TreasDir account and find/download the 1099-INT form from within your account...they don't mail them out.

Thank You!