To enter the amount of state exempt dividend income (i.e. due to your mutual fund investing in U.S. government obligations), follow the steps below. If your state allows this deduction, it will flow to the appropriate section of the state return.  If you need help accessing Form 1099-DIV in the TaxAct program, go to our Form 1099-DIV - Entering Dividend Income in Program FAQ.

1. From within your Form 1099-DIV, continue with the interview process until you reach the screen titled Dividend Income - State Tax-Exempt Investments.
2. Click Yes, and continue with the interview process to enter your information.