Hi,
We had savings bond that matured in 2022, and we reported the interest on 2022 1040X, though we cashed in the savings bond in 2023. Since we cashed in the bond in 2023, we received a 2023 1099-INT. I entered the interest in Box 3 of 1099-INT Turbotax form, and checked "Savings Bond interest previously reported". However, SmartCheck (using TT 2023 Premier) gives an error, stating that it "cannot be previously reported bond interest since the program does not support this kind of adjustment to Special Handling Interest."
I saw another post that suggested checking "My accrued interest is included in this Form 1099-INT," but our situation is different than what that poster had done, since we have not been reporting the accrued value as interest each year; we reported it when the bond matured in 2022. If I change the "Adjustments to Interest" to "Other," then the error goes away, but then I am not able to let the IRS know on the Schedule B form that I had reported this savings bond interest previously.
Thank you for any advice!
I just had the same thing show up as I tested this.
BUT, it turned out to be an error in the way I entered the interest on the main 1099-INT.
I forgot that....
....On the main 1099-INT, You need to put the Savings Bond interest in box 3 of the main form.
....Then, of course the same amount on the follow-up page about having previously reported those Savings Bond $$. That cleared the problem for me....at least on the desktop software.
Hi Steam Train,
Thank you for your prompt reply. I double-checked and the savings bond interest has been entered into Box 3 on TurboTax 1099 INT.
More suggestions, please?
Are you able to submit your federal tax return electronically on TT if the error persists, even though the tax form looks correct?
Thanks.
Troubling.....yes. My Desktop Premier (on a Windows computer) doesn't have a problem.
1) make sure the previously reported interest, you enter on the follow-up page, is not greater than box 3 $$ amount.....might even try entering a few $$ less on the follow-up page as the previously-reported $$ amount, in case there is some strange rounding error.
2) Delete the 1099-INT, and re-enter it manually again? make sure the 1099-INT has only the box 3 $$ and the follow-up previously-reported amount, Don't put anything in any of the other boxes...no zero values anywhere.
Can you e-file anyhow? Maybe, or maybe not...check your Schedule B in Forms Mode and see if the interest is taken out in the Part 1 Interest area (See picture below)
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Otherwise...I'm clueless as to what to do.,,,other than Customer Support:
What is the TurboTax phone number? (intuit.com)
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