Enter a Portion of a Dividend or Interest That Is State Tax Exempt

How do I enter the portion of a dividend or interest for a given source that is state tax exempt?  Do I need to make 2 entries - one for exempt and one for nonexempt?

The answer to the question is no, you don't need to make two entries. Instead, try this:

Here's how to get to the interest income screens in the TurboTax Online:

1. Select the Tools button in the upper right-hand portion of the screen. 
2. Select Topic Search.
3. When the window opens, type "interest" into the box, select the interest item, and then select GO.
4. Follow the on-screen instructions to enter the information for your non-taxable interest.

Here's how to get to the interest screens in the TurboTax desktop or CD/download version:

1. Enter your cursor into the search box in the upper right-hand portion of the screen.
2. Type "interest" into the box, click on the interest item.
3. Follow the on-screen instructions to enter the information for your non-taxable interest.

On the page titled Do Any of These Apply?, check the box that fits your situation. 

Select Continue. TurboTax will calculate the income accordingly.