Schedule 1 Line 24z

[DMMKAA]

Been using TurboTax for 35+ years.  Small problems occasionally occurred ,but overall ok.  Now comes 24z.

In 2024, I bought Treasury notes on auction.  Several charged normal for the note, but then added an "accrued Interest payment", since it was a re-issue note from the prior month.  Brokerage 1099 reflects full interest income as paid as taxable.  Where is Schedule 1 line 24z?  Not available in TT.  Why?  Where do they expect me to repot the prepaid interest as not taxable to me?  Interest income as a negative?  That works, but will, no doubt raise the ire of IRS!

OK TurboTax, you claim 100% accuracy,  Why block us out of 24z?

[Mike9241]

on the wages and income page select interest > continue

enter payor and amount

check the box my form has info in other boxes 

continue

on the next page check the box I need to adjust the interest reported

contiinue

on the next page enter the accrued interest paid as a positive number and use the drop-down box below to select for reason for adjustment - my accrued interest. 

this will show up on schedule B where it belongs not  schedule  1 line 24z 

by the way, you can not deduct more in accrued interest than what you received on the related obligation, any excess goes into next year's return.. 

I would strongly suggest since this is a US government interest (line 3 of 1099-INT) you use a separate 1099-INT for this. the reason is Turbotax has a bad habit of prorating the accrued interest adjustment among some of the other lines on the form including line 1. This has been an issue with Turbitax for decades. 

[AmyC]

I can help with entering the information but I can't respond to the programming. The seller of the bond reports the accrued interest while the purchaser will deduct the accrued interest from the 1099-INT.

You can enter the accrued interest adjustment in the 1099-INT section of TurboTax. You will see the adjustment on Sch B.

Follow these steps to make an adjustment:

1. Select Federal Taxes
2. Select Wages & Income
3. Edit your 1099-INT information
4. Select Continue
5. Select I need to adjust the taxable amount, select Continue
6. Enter the accrued interest paid in the Adjustment box - enter a positive amount to subtract the interest
7. Select the Reason for Adjustment as My accrued interest is included in this Form 1099-INT -my accrued interest is included.