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April 3, 2025
Question

exempt interest dividends

  • April 3, 2025
  • 1 reply
  • 0 views

on my 1009-DIV, line 1a for total ordinary dividends appears to include the exempt interest dividends.

I confirmed this by looking at my monthly statements. So those dividends are being entered into income.

Those dividends appear to be taxed federally, but in some states they may not be if they are US gov investments.

These are different from the tax exempt interest reported on the 1099-INT

 

    1 reply

    AmyC
    Employee
    April 3, 2025

    Your 1099-DIV box 1a requires you to make an entry for the US Obligations. This income is taxable to the federal but may not all be taxable to the state. In that case:

    1. return to where you entered the 1099-DIV
    2. go through the entry screen, continue
    3. on the next screen uncommon situation
    4.  select a portion is US Government interest.
    5. Continue.
    6. Then enter the interest.

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