Deducting Treasure ETF dividends from PA return?

Question

I have a couple ETFs that invest in Treasuries, so their dividends are exempt from PA tax. They are subtracted from PA Schedule B - Line 3; but there is no obvious way to get them there without overwriting, and then I can't efile. The PA interview doesn't ask about dividends; it does ask about Treasury interest.

I have found that there is a box at the bottom of the Dividend form that says "from US Treasury Obligations". If I check that it then asks the percentage of dividends that are from US Treasury Obligations. If I put 25.4 in there, it puts the right number in PA Schedule B - Line 3; and everything "looks" good.

Is that an acceptable way to do it? I asked H&R customer support and they say they don't have any idea.

Thanks much.

wadelippman · Accepted Answer

Reading this posted, I realized I failed to say I was using H&R Block Software.  Sorry.For the NY version they ask about tax exempt dividends and simply subtract it, but not on the PA version.

ira smilovitz · Answer

Each state handles things independently of the others. NY's classification of income generally follows the federal rules. PA does things differently.Ira Smilovitz, EALeonia, NJ

wadelippman · Answer

Are you saying in PA that Treasuries are taxable on the state tax return?

John Levine · Answer

In article                 wrote:No, but the way the return is organized and the other variations betweenstate and local taxable income are different in each state.PA has a state free online filing system called PA directfile that mosttaxpayers can use.  NY doesn't have anything like that.

Deducting Treasure ETF dividends from PA return?

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