Per the IRS instructions for Exempt-Interest Dividends,
"Enter exempt-interest dividends, which are income dividends paid to you from a mutual fund or other regulated investment company earned on federally tax-exempt securities, such as state municipal bonds. Exempt-interest dividends will not be listed on Schedule B, but will be included on Form 1040, line 2a as tax-exempt interest."
To enter 1099-DIV, Box 10:
- Go to Screen 12, Dividend Income.
- Scroll down to the Form 1099-DIV section.
- Locate the Tax-exempt Interest subsection.
- Enter the amount in, Total municipal bonds.
This amount will flow to Form 1040, line 2a.
Before tax year 2018, these amounts flowed to Form 1040, line 8b.