Knowledge Base

11523: 1099-DIV - Exempt Interest Dividend Not Carrying to State

1040 Individual Data Entry

Interest dividends are taxable to my state but exempt from the federal return. I entered an exempt interest dividend on the DIV screen and it is not flowing to my state?


Tax-exempt interest income is reported on box 10 of Form 1099-DIV.

Enter the amount of exempt-interest dividends in field 10 on the DIV screen. To indicate a breakdown of the interest from line 10 for state purposes, use the fields available at the bottom of the DIV screen.

2012 And Prior Years

Amounts entered in line 10 of the federal DIV screen do not automatically flow to state returns.

There are two options to have the amount appear on the state return:

  • Override the state return line.
  • Use line 8 of the federal INT screen and select the affected state from the ST drop list at the top of the screen.

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