Line 2: Dividends

Column A: Include all dividends from mutual funds, investment trusts, or regulated investment companies investing in state and municipal bonds.

Column B: Include that portion of any net dividends from a mutual fund, investment trust, or regulated investment company that is attributable to direct federal securities. You cannot take this deduction unless you are provided a statement from the fund giving the percentage of net dividends attributable to direct federal securities. If a return is filed on paper, a copy of the statement must be included with the return to take this deduction.

Interest income from repurchase agreements involving federal securities cannot be deducted.

Married Separate Filers: Divide dividends based on registered ownership of stock.

Jointly held: Divide equally.

Held in the name of only one spouse: Allocate dividends wholly to that spouse.