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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 Form 1099-DIV Dividends and Distributions 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 State, then click Pennsylvania (or PA). On smaller devices, click in the upper left-hand corner, then click State.
  2. Click Income in the Pennsylvania Quick Q&A Topics menu to expand, then click Dividend and capital gain distributions (Schedule B).
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Pennsylvania – Dividend Reductions – Taxpayer/Spouse, enter the PA exempt-interest dividend income (if any), then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.

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