On tax-exempt bond funds with multiple states, I just enter any state except the one where the client resides.  IRS doesn't care, and the resident state just wants to tax everything but its own.  If you want to do $25 worth of work to save your client $5, then find the percentage of the fund's interest that comes from  the resident state, plus Puerto Rico and US possessions.  Might come out to 5%, so with $8,000 of dividends you can make two entries and allocate $400 to resident state.  Which at a tax rate of 2.5% (as in my state) saves $10.