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what to enter " Tell us more about your exempt-interest dividends: in tennessee? 1099-div

I live in TN (no income tax) and have no state listed on my Schwab 1099-DIV, which says that I have exempt-interest dividends. TT is asking: 1 - "Did I earn exempt-interest dividends in only one state?" and 2 - "Did I earn exempt-interest dividends in more than one state?" How can I possible know the answers and how should I respond to these TT questions? Clicking on "My 1099-DIV doesn't have a state listed." does not tell me what to do.
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3 Replies
ThomasM125
Expert Alumni

what to enter " Tell us more about your exempt-interest dividends: in tennessee? 1099-div

You can answer that you only earned them in one state and enter Tennessee for the state you earned them in. The purpose of the question is to determine if any of the dividends are from the state you live in, as they may not be taxable in that state. Since you don't have a state income tax, it won't matter what state you assign the income to.

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what to enter " Tell us more about your exempt-interest dividends: in tennessee? 1099-div

I agree with opening post that TurboTax interview is way too vague on this topic.  Thanks @ThomasM125 for clearly reinforcing what the pop-up answer in tax interview explains and, better yet, for adding the solution to make proper entries.

SUGGESTION FOR TY2026 IMPROVEMENT:  If TT set 2025 interview with better up-front questions or programming, that would've avoided confusion.   For instance, list non-tax states in interview and specify corresponding instructions right here. 

RogerD1
Expert Alumni

what to enter " Tell us more about your exempt-interest dividends: in tennessee? 1099-div

We at Intuit TurboTax want our users to be completely delighted with their experience using our products and services, and successful in their financial lives and businesses.

Once you file your return, as long as the settings to receive communication from Intuit don’t block it, you will see a pop-up message or receive an email with a survey asking you about your experience. We encourage you to leave your notes and comments there. “Voice of the Customer” notes and comments are read and acted upon. 

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