Exempt-Interest Dividends

Forum|Forum|3 months ago
March 25, 2026
2 replies
20 views

I can't get the correct adjustment for state specific exempt interest dividends (in my case Pennsylvania). It seems the adjustment should be made on the Div Inc Wks but when I enter the adjustment it just adds the amount to the already existing total amount of exempt interest dividends. For example, one of the 1099-DIVs has $422 total exempt-interest dividends with $112 being allocable to PA. If I put the $112 in the adjustment box it just adds another $112 to the exempt-interest dividend amount which is wrong.

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George4Tacks

Level 15

Did you try a negative number?

-112?

Answers are easy. Questions are hard!

S

SteveD9Author

Level 3

I tried entering it as a negative but that's not correct.

I do make the adjustment on the PA worksheet but it puts the adjustment on Line 4 of Schedule B and incorrectly adds it to the exempt-interest dividend income that is reducing the total dividends. There should be a way to edit line 3 of PA Schedule B to the correct amount of PA exempt interest dividends. I've done this in other tax software.