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I think exempt interest dividends for Schedule B are shown on Form 1099-DIV, line 10 from your investment firm. Good luck!
They are referring to exempt interest dividends from a mutual fund. This interest is reported on Form 1099-DIV in box 10: exempt interest dividends. Please refer to page 22 of the IRS form 1040 instructions under the heading, "line 8b: tax-exempt interest" for additional clarification. https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
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