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Not applicable
posted Mar 13, 2022 11:41:36 AM

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?

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1 Best answer
Expert Alumni
Mar 13, 2022 12:01:04 PM

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. 

3 Replies
Expert Alumni
Mar 13, 2022 12:01:04 PM

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. 

Level 15
Mar 13, 2022 12:22:20 PM

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.

 

 

Not applicable
Mar 13, 2022 1:44:50 PM

Thank You!