Municipal bond dividend

[avlsunnyday]

I'm entering my municipal bond fund dividends in TurboTax.  It asks, which state, and I choose "More than one state".  There is a box underneath that to check that also says "I earned tax exempt dividends in more than one state".   Do I check this box as well?  There is a big difference in my return if I check this box as opposed to it not being checked.  

[JohnW152]

Based on your statement, checking the box for "I earned tax exempt dividends in more than one state" seems to be truthful, so you would check the box.

If any part of that statement isn't correct, you wouldn't check the box.

[Mike9241]

this can be complicated.  your resident state should tax all out-of-state municipal dividends/interest. some states tax all their municipal interest.   my state, Illinois,  is more complex.  certain municipal interest/dividends are taxable others are not. so for Illinois you would need the source of those MUNI dividends 

In Illinois all muni interest/dividends are added on line 2. then there is schedule M where the amount of interest for each bond which is exempt is entered and the total ends up a a subtraction