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RobC3,
Yes, US Government obligation income is exempt from PA state tax. See
https://revenue-pa.custhelp.com/app/answers/detail/a_id/264/kw/dividends%20us%20government/session/L3RpbWUvMTcxMjgwMDc5Mi9zaWQvRXIxNzV1eXE%3D however there is a distinction between direct US government obligations and indirect one. Use the link on the above page to decide which your dividend US government income is from.
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