I was cruising along doing my taxes online with Turbo Tax, wishing we just had a national sales tax instead of income tax, and during the review, Turbo Tax gave me this error:
"Schedule B: State ID exempt-int div-3 must be entered."
and offered to let me fix it in the form below. Don't fall for it. Do not try to fix it on the form shown. You have to fix it elsewhere.
Go back to "Personal / Personal Income / I'll Choose what to work on / Dividends on 1099-DIV"
If your problem is the same as mine, under "Exempt Div." you have "$0" shown.
You need to get rid of the "$0" and have it show a "-" instead.
I was able to just hit "Edit" on both entries, change nothing, and select "Continue".
After that it showed the "-" instead of the "$0".
Then my taxes passed review.
I hope your fix is as easy.
(Is it too late for the fairtax?)