Where do I report exempt-intereest dividends?

The exempt interest dividends are reported on your 1040 and can be entered into your 1099-DIV by using the check box 'My form has info in other boxes'.  Once checked it will open up Box 12 for you,  then TurboTax will carry it to the appropriate place on the 1040.

1. Search (upper right magnifier) > Type 1099div > Click the Jump to... link
2. Click the check box noted above.
3. Scroll down to the Tax-exempt Interest, box 12
4. Enter the amount in the field Total municipal bonds.
5. This amount will flow to Form 1040, line 2a per the instructions
6. See the image below

Review your documentation to see if any of this tax exempt interest dividend is taxable on your resident state return. If they are earned from one of your state holdings it will be tax exempt on your state as well, however sometimes it's a percentage or all of it will be taxed to your state.