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Pennsylvania Tax Exempt Dividends

Dividends from my Fidelity account are 50% exempt from the Pennsylvania tax revenue.  When I make this adjustment on my federal form it DOES NOT appear on my PA tax return. I tried serval times now no luck is there anyway of making the adjustment directly on the State Forms?  

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3 Replies

Pennsylvania Tax Exempt Dividends

are you referring to MM fund dividends, 50% sounds like SPAXX.  Just to confirm - what adjustment did you make... after 1099-DIV input there is a supplementary question where you provide the US Gov Obligations $ amount in Box 1a.

Pennsylvania Tax Exempt Dividends

I tried that it still does not come through to the PA tax forms if you  try to make an adjustment in the PA tax forms. It will not allow you to do that either

AmyC
Employee Tax Expert

Pennsylvania Tax Exempt Dividends

There are 2 steps to make PA give you the adjustment. 

Step 1 The federal side

  1. Edit the 1099-DIV
  2. Uncommon situation
  3. Check a portion from US Government
  4. Continue
  5. Enter the  amount
  6. Continue

Step 2 The state of PA

  1. Continue through the screens 
  2. Look for Dividend Income Summary
  3. Edit the dividends containing the exempt amount
  4. Adjust federal dividend income screen asks for the PA adjustment
  5. Enter the PA amount
  6. Enter the type of adjustment
  7. Check the box for type of tax exempt PA obligation
  8. Continue
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