Why is my exempt dividend being taxed

I think you may be referring to exempt-interest dividends. They should be listed in box 12 on your form 1099-DIV. If so, they will appear on your tax return, on line 2(a) of form 1040, but they will not be taxable as they won't appear on line 2(b), where the taxable amount is listed. 

You can view your form 1040 and schedules 1 to 3 while working in the online version of TurboTax by following these steps:

1. Click on Tax Tools in the left menu bar
2. Click on Tools
3. Look under Other Helpful links….
4. Choose View Tax Summary
5. Look in the left menu bar and choose Preview my 1040
6. Scroll down the page to see form 1040 and schedules 1 to 3