The NJ state software does not separate tax exempt dividends between NJ and multiple states to compute NJ tax amounts

Yes, there is a place to enter tax-exempt interest dividends in TurboTax. Here is how to find it:

1. Login and continue your return.
2. Select Federal from the menu on the left, then Dividends.
3. Add a new 1099-DIV or edit the one you have already entered.
4. The next screen should show  Tell us if any of these uncommon situations apply 
5. Click on 3rd option. My State doesn't tax all of this interest
6. Then select in the box below New Jersey (screenshot 1)
7. On the next screen click on My form has info in more than just box 1, this will open the detail where you will add the exempt interest on box 14 (screenshot 2)

@jimjc15