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You can check the supplementary pages of your 1099-DIV to find where the exempt interest dividends came from. Specifically you are looking for your state and/or US Government obligations amounts.
Revisit your 1099DIV entries. Following the form entries you will find follow on questions about the source of the exempt interest. If from US government obligations you will check the "US Government Interest" box and then enter the amount that applies there. If none are federal and none of the other options apply click "None of these apply" and continue.
A couple of screens later you will be asked about any state sourced exempt interest.
If more than one state click the box for more than one state. Enter any of your state's amounts. In the second line you can then select "more than one state" and put the rest of the box 11 amount.
The total of the state boxes and anything you entered as a US government obligation has to total the box 11 amount.
You can select "More than one state" and continue if you:
- Live in a state with no income tax (AK, FL, NV, SD, WA, WY)
- Live where exempt-interest dividends from other states aren't taxed (District of Columbia, IN)
- Have a small amount of exempt-dividends and aren't concerned with extra state tax. Your state will tax these dividends or interest if you don't live in an area listed above.
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