On the My 1099-DIV and/or 1099-INT doesn't have a state listed help page it says:
You can select More than one state and continue if you:
...
- Live where exempt-interest dividends from other states aren't taxed (District of Columbia, IN)
(emphasis mine)
However, when I go to complete my Indiana State Return -> Investments -> Interest on Municipal Bonds BOTH the Help page Interest on Municipal Bonds Outside Indiana[1] and the application page Interest on Out-of-State Municipal Obligations[2] tell me otherwise.
Additionally, Turbo Tax Review complained that the State (postal code) should be entered either for multiple states as XX or the form lists multiple states and amounts individually.
[1] "Any interest you received from a state or local government obligation outside Indiana is subject to Indiana tax and must be reported as Indiana income if the obligation was acquired after December 31, 2011"
[2] "We noticed that you received exempt interest from state obligations. Interest received on state or municipal obligations outside Indiana acquired after December 31, 2011 is not subject to tax in your federal return but is taxable in Indiana."
