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Deducting Treasure ETF dividends from PA return?

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.

Reply to
wadelippman
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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.

Reply to
wadelippman

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

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

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

Reply to
wadelippman

No, but the way the return is organized and the other variations between state and local taxable income are different in each state.

PA has a state free online filing system called PA directfile that most taxpayers can use. NY doesn't have anything like that.

Reply to
John Levine

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