Need to Amend Federal return for error to Savings Bond Interest

[elmurdock]

I have a 1099-INT for cashing Series EE Savings Bonds.  When completing my income section, I entered the amount of the interest  (2891.64) in Box 1 and Box 3.  Think I was only supposed to enter in Box 3.  E-Filed the return, then in sight checking my Schedule B, the amount showed up double the amount of the actual interest I received (5,782).  I'm guessing it added Box 1 and Box 3.   I have started the Amend process.  I entered the 2891.64 amount in Box 3.  But, it reduces the AGI by 5,782.  Also shows $0 for the interest at this bank.   It shows an additional refund of 1,499.   I expected the AGI to only be reduced by $2,891.64.  My original return was accepted and we have received our refund.  I thought the IRS would catch my error, if they had the information from the Bank and up our refund.  But that wasn't the case.  Any help would really be appreciated.

[LindaS5247]

It sounds like your return was already processed so that is good. You should wait until it is fully processed to amend.

Your income should be going down by $2891.64, not the full amount.

The instructions for Form 1099-Int say:

Box 1. Interest Income

Enter taxable interest not included in box 3. Include amounts of $10 or more, whether or not designated as interest, that are paid or credited to the person's account by savings and loan associations, mutual savings banks not having capital stock represented by shares, building and loan associations, cooperative banks, homestead associations, credit unions, or similar organizations. Include interest on bank deposits, accumulated dividends paid by a life insurance company, indebtedness (including bonds, debentures, notes, and certificates other than those of the U.S. Treasury) issued in registered form or of a type offered to the public, or amounts from which you withheld federal income tax or foreign tax. In addition, report interest of $10 or more attributable to a TIH of a WHFIT, or accrued by a real estate mortgage investment conduit (REMIC), a financial asset securitization investment trust (FASIT) regular interest holder, or paid to a collateralized debt obligation (CDO) holder, as explained later.

Box 3. Interest on U.S. Savings Bonds and Treasury Obligations

Enter interest on U.S. Savings Bonds, Treasury bills, Treasury notes, and Treasury bonds. Do not include in box 1. For a taxable covered security acquired at a premium, see Box 12. Bond Premium on U.S. Treasury Obligations, later.

If you make payment on a U.S. Savings Bond or other U.S. obligation on which interest is reportable, enter your name, address, and TIN on Form 1099-INT and Form 1096, Annual Summary and Transmittal of U.S. Information Returns, not those of the U.S. Treasury Department or the Bureau of the Fiscal Service.

So the interest in Box 3 is correct.  Box 1 would be any interest not in Box 3.  

Column A of your amended return should have what you originally entered (i.e. the amounts in both boxes).  Column B should have your changes only.  So your change would be to Box 1 making it $0.  Box 3 would remain the same at $2,891.64.

Is that what your amended return shows?  You only are changing Box 1 not 1 and 3.

If this does not help please feel free to come back to TurboTax Community with additional details or questions or click here for information on Turbo Tax Support.  You can connect with a Live TurboTax Agent and share your screen.

[VolvoGirl]

When you amended did you first delete that 1099?  Then add it again with only box 3?  Sounds like you didn't get box 1 removed.  

[LindaS5247]

You can delete your Form 1099-R and reenter it as follows:

Follow these steps to delete your 1099-R in TurboTax:

1. Go to Form 1099-R
2. Select the trash can next to your 1099-R and then answer Yes

Here's where to enter your 1099-R in TurboTax:

1. Open or continue your return
2. In the Federal section, select Wages & Income
3. Scroll to locate Retirement Plans and Social Security, and select Show more
4. Select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R)

You can also find the 1099-R section using the Search option in TurboTax. Open your return, enter 1099-r in the search bar, and select the Jump to 1099-r link.