I'm working on my 1099-DIV (from Betterment) and it's asking me to choose the state where your tax-exempt dividends came from. Where do I find that information?
You may have documentation with your 1099-Div that reports this info for you.
Per Expert @ErnieSO:
"You only need to enter the percentage from your state. The rest will be exempt from federal but taxable to your state.
On the screen Which state are your $XXX.XX of exempt interest-dividends from? Check I earned tax-exempt dividends in more than one state.
In the dropdown, select your state and enter an amount. For example if you had $100 in exempt-interest dividends and your sheet says 10% exempt in your state, enter $10 (10% x $100).
On the next line, enter More than One State (the last choice in the dropdown). Enter the rest of your exempt-interest dividends. For example, if $10 was exempt in your state, enter $90 in More than One State ($100 - $10 you put for your state).
Most mutual fund companies have a tax center that will have a sheet showing the tax exempt percentage for your state. Or you can call the company for the information."
Usually your 1099-DIV will come with information telling you that. Your brokerage can also tell you or you can find the fund’s portfolio composition with a Google search.
You may have documentation with your 1099-Div that reports this info for you.
Per Expert @ErnieSO:
"You only need to enter the percentage from your state. The rest will be exempt from federal but taxable to your state.
On the screen Which state are your $XXX.XX of exempt interest-dividends from? Check I earned tax-exempt dividends in more than one state.
In the dropdown, select your state and enter an amount. For example if you had $100 in exempt-interest dividends and your sheet says 10% exempt in your state, enter $10 (10% x $100).
On the next line, enter More than One State (the last choice in the dropdown). Enter the rest of your exempt-interest dividends. For example, if $10 was exempt in your state, enter $90 in More than One State ($100 - $10 you put for your state).
Most mutual fund companies have a tax center that will have a sheet showing the tax exempt percentage for your state. Or you can call the company for the information."