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?

[RaifH · Accepted solution]

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. 

[SteamTrain]

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.

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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.

[Anonymous]

Thank You!