The US interest is only for state income tax purposes, so you have to know the state's rules for what US interest is excluded. This goes on line !aor oyur answer to US interest in onle versions
NOTE
DIVIDENDS (INTEREST) EARNED ON U.S. OBLIGATIONS
This type of dividend is federally taxable and is actually interest income distributed from a mutual fund that invests in direct U.S. obligations.
This is usually reported on a broker's statement as supplemental tax information under headings such as "U.S. Government Obligations Information", "Interest Earned On U.S. Government Securities", or "Important State Tax Information". You will not receive a Form 1099-DIV for this.
Usually, dividends earned on U.S. obligations are free from state tax. However, some states require that a minimum percentage of a fund's assets consist of U.S. obligations. You should check your state's income tax instructions to determine whether it's taxable or not. Be careful to only enter the portion that is tax-exempt for your state as our state program will not tax this amount.
HOW TO DETERMINE WHAT TO ENTER:
The broker's statement will usually list each fund and its percent of income that was earned from U.S. obligations. If your state considers this income tax-exempt, use the percentage of your fund and multiply by ordinary dividends. Enter the result on our Form 1099-DIV Worksheet under Box 1a for "U.S. govt interest included in Box 1a".
Enter the portion of dividends in box 1a that was interest earned on U.S. obligations in the field below box 1a.
Note that if you enter an adjustment below, the program prorates the U.S. government interest for the adjustment when transferring to the state program.
