How do I account for exempt dividends from municipal income not taxable in my state?

Forum|Forum|7 years ago
March 21, 2019
1 reply
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A portion of the exempt dividends from a number of funds investing in municipal income are not taxable in Massachusetts. How do I flag this income during the federal interview so that it is handled properly during the State interview?

Best answer by IsabellaG

In the Federal section, enter your 1099-Div.

On the screen Let's get the details from your 1099-DIV or brokerage statement, check the box My form has info in more than just these boxes (this is uncommon). A drop-down will appear, and you can enter the amount of tax-exempt dividends in box 11.
Continue to the screen Which state are your exempt interest-dividends from? If the entire amount isn't from MA, you can check the box I earned tax-exempt dividends in more than one state.
A drop-down will appear and you can add the details.

IsabellaGAnswer

Employee

In the Federal section, enter your 1099-Div.

On the screen Let's get the details from your 1099-DIV or brokerage statement, check the box My form has info in more than just these boxes (this is uncommon). A drop-down will appear, and you can enter the amount of tax-exempt dividends in box 11.
Continue to the screen Which state are your exempt interest-dividends from? If the entire amount isn't from MA, you can check the box I earned tax-exempt dividends in more than one state.
A drop-down will appear and you can add the details.

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rlb77

Employee

I have the same issue but I Imported the 1099-R infor and the dropdown boxes you mention do not appear. Why and what can I do? Box 11 is correctly filled in but I do not have any dropdown box to tell TurboTax which states the dividends came from nor the $ amounts.