How to Fix 1099 DIV Error in TurboTax

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Fix 1099 Div Error in TurboTax
 

Users have to edit all 1099-DIV or 1099-INT forms that contain tax-exempt interest or dividends to ensure that at least one state is mentioned or “More than one state” is selected. This will correct the errors.

In TurboTax, the following error may crop up: “Schedule B: State ID exempt-int div-1 must be entered.”

This is a 1099-DIV form error that crops up if state postal code letters are incorrect. Instead of the user’s home state’s two letters (such as CA or NJ) it should actually be “XX”, which actually refers to more than one state in the error-check screens.

While this error is generally seen in 1099-DIV forms, similar errors are also seen in 1099-INT forms.

In most cases, during error check, the number should be replaced with XX. This will rectify the error, but if the $$ amount is large, users should check if their resident state taxes can be lessened by breaking out just the $$ that came from bonds issued for their native state.

But it is recommended to not correct this while the error-check is progressing. Rather, the user should review the original form to ensure that the entire process is correct.

It is possible that the user has either included/imported a 1099-div form with entries in box 10 or a 1099-int form with entries in box 8. Contact TurboTax experts to know more.

Steps to rectify the 1099 Div Error:

Users have to return to the Federal section and edit those 1099-DIV forms that have box 10 $$ or those 1099-INT forms that contain box 8 $$. When this is done, on one of the pages following the main -DIV or -INT forms, users have to provide the names of state/states from which the tax-exempt $$ came. If the $$ came from more than one state, then “More than one state” should be chosen at the end of the states list

Users also have the option to separate the tax-exempt $$ associated with the bonds issued by their native state from bonds issued by all the other states. If the tax-exempt amount is low, this is not necessary. In such a case, the user can just select “More than one state”.

These steps should help users solve the problem. However, if they need any further guidance, they call our TurboTax tech support team. Get several solutions related to tax-related matters. This TurboTax Customer Support Team is available 24X7. Dial the toll-free number 1844-313-4856. The TurboTax customer support team consists of highly-skilled and experienced experts who are ready to answer all queries and provide trouble-shooting options.

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