Pennsylvania - Schedule B - Tax-Exempt Dividends and Exempt-Interest Dividends

Pennsylvania Schedule B provides a specific line for state tax-exempt dividends, but those dividends must qualify based upon the PA instructions. When you enter an ordinary dividend amount in Box 1 or exempt-interest dividend amount in Box 10 of the Form 1099-DIV and indicate it is tax-exempt, the TaxAct program cannot determine if it meets the requirements to be tax-exempt for PA purposes.

To enter or review the Pennsylvania Schedule B information:

  1. From within your TaxAct return (Online or Desktop), click on the State
  2. Click Pennsylvania under the expanded State menu. 
  3. Click Income to expand the category and then click Dividend and capital gain distributions (Schedule B)
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

If you have any exempt-interest dividends, you will enter the PA tax-exempt amount on the screen titled

Pennsylvania – Dividend Reductions – [Taxpayer or Spouse].