Tax-exempt interest reported on a 1099-INT or 1099-DIV is entered on either Interest Income (1099-INT, 1099-OID), or Dividend Income (1099-DIV). This may be reported in Box 8 of Form 1099.
To enter federal amounts:
- From the Input Return tab, go to Income ⮕ Interest Income OR Dividend Income.
- Enter amounts in the Total Municipal bonds field.
- These amounts will flow to Line 8b of Form 1040.
To enter in-state municipal bonds:
- From the Input Return tab, go to Income ⮕ Interest Income.
- Enter amounts in the In-state municipal bonds as a subset of the total entered in the total municipal bonds field.