Tax Exempt Dividends

I have tax exempt dividends, shown on my 2012 1099-DIV form.  In Turbo Tax summary, they appear in the detail for dividends (this form was imported on-line from my financial institution), but NOT in the 'Tax-Exempt Dividends' column.  How can I be sure I am getting credit for tax exempt dividends?This same question appears in the forum with no answers posted.  Is there an answer?
  • If you open the total dividends number it indicates the taxable number. However if if open the tax exempt number it indicates 0. Not sure if the calculation is being done accurately!
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This is only one of myriad problems with TT 2012. The forms updates were done late in the game because they weren't ready from the IRS. Obviously, Intuit incorporated the new forms but overlooked the Summaries piece of the whole package. As a result, the Summary tax-exempt dividends/interest number is drawn only from the old entry line without reading the new one. What's more striking is that the package doesn't seem to have been beta tested at all this year (am using TT Premiere); the Help (which seems to have been thinned out this year) informs that you can enter tax exempt interest dividends in either the new or old lines.
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    If you look at the 1099-DIV in Turbo Tax you'll notice an item "Exempt-Interest Dividends (box 10). however this item will be  blank because the the information is actually reported as interest and not dividends. If you look at your 1099-INT information in Turbo Tax you'll see the amount from that institution reported in box 8, Tax-exempt Int. This is actually correct. If you now look at your 1040, on line 8b you should see the amount of the tax exempt interest-dividends.
    • Thanks for your response. However,Vanguard no longer provide a 1099-INT form they combine it with 1099-DIV " interest dividends (including specified private-activity bond interest) from tax-exempt bond funds will be reported on Form 1099-DIV."
      If I open up the comment on the dividend total in the turbo tax interest and dividend summary, it shows a lower number which is the taxes dividend (total less tax exempt). If I do the same to the tax exempt summary I get zero which I know to be incorrect as I have tax exempt dividends, which also does not show up in the tax exempt interest. Do I go ahead and enter it manually?
    • You will find a similar situation if you look at the 1099-INT in Turbo Tax. Box 9 is for Specified Private Activity Bond Interest.
    • Looking at my tax summary I am being taxed on the tax exempt dividends. Is this a Turbo glitch and should I enter all the numbers in manually?
    • If this was included with Interest, the tax free interest should be entered from box 8 under Tax exempt Int. If this was not imported correctly then revise it.
    • Where can I see up to this point what my 1099 has on it?
    • Just spoke to TT Support, when entering tax exempt interest, use the 1099-INT and just enter the tax exempt amount in box 8. Don't put anything in box 1.
    • While these work arounds solve the problem, it is still not correct.  Last year my tax exempt mutual bond fund did report it as interest, but this year it is reported as dividend.  So . . , IMHO the TT program needs to be updated to accept the information correctly.  The problem will get worse if the Feds decide to tax interest and dividends at different rates in the future.  Why not fix it now?
    • I tried what you just said by entering the $$ to box 8 of 1099-INT form, then in the TT Wages and Income Summary page, I saw the amount showed up under the line of Interest on 1099-INT line but the line of Tax-Exempt Dividends still remain 0. Not sure how to correct this.
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