I have accrued interest paid on purchases of tax exempt munis. Can I reduce my interest reported

[6hull]

It is in Supplemental information not reported to the IRS. Turbotax ignored it although I uploaded the full 1099.

[GeorgeM777 · Accepted solution]

No, don't reduce the interest reported on your 1099-B.  Rather, enter it as is and then make a negative corresponding entry that represents the interest you paid the other bond holder.  To enter a corresponding negative amount, in TurboTax online, from the Wages & Income section scroll down to Less Common Income, then select Miscellaneous Income and then select Other Reportable Income.  Enter a description for the adjustment (Adj for exempt interest) and then enter the adjustment as a negative figure.

If you are using TurboTax CD/download, the steps are essentially the same.  Select the Personal tab, then Personal Income, and scroll down the screen to Less Common Income.  Then continue as mentioned above.