How to enter 1099-INT or 1099-DIV tax-exempt interest in Lacerte

Tax-exempt interest reported on a 1099-INT or 1099-DIV is entered on either Screen 11, Interest Income (1099-INT, 1099-OID), or Screen 12, Dividend Income (1099-DIV). This may be reported in Box 8 of Form 1099.

To enter federal amounts:

• Go to Screen 11, Interest Income (1099-INT, 1099-OID) and enter amounts in the Total municipal bonds field; or
• Go to Screen 12, Dividend Income (1099-DIV), and enter amounts in the Total municipal bonds field.
• These amounts will flow to Line 8b of Form 1040. 

To enter in-state municipal bonds:

• Go to Screen 11, Interest Income (1099-INT, 1099-OID) and enter amounts in the In-state municipal bonds as a subset of the total entered in the total municipal bonds field.