There is an error when entering tax exempt dividends. The dividends are added to my taxable income. Thus the tax exempt dividends are taxed. Thanks, Scott

sb_cain · ‎February 6, 2024

DavidD66 · ‎February 6, 2024

What box/line number on your Form 1099-DIV are your "tax exempt" dividends reported in/on?

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sb_cain · ‎February 12, 2024

Box 12

RobertB4444 · ‎February 15, 2024

That's the correct box. And the system should be adding the amount to the forms but not as taxable income.

Make sure that you are entering the numbers into the 1099-DIV form and not one of the other entry screens.

And just to clarify - are these dividends increasing the tax on your federal return or state return? Some states have weird rules.

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SteamTrain · ‎February 15, 2024

AND,,,if you are retired and also getting Social Security Benefits

...the entry of Tax-Exempt $$ Can make more of your Social Security $$ taxable.

SO it could be that effect,

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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