Thanks for your reply. I appreciate the effort you put into it. If my question should have been a separate thread I apologize for misunderstanding the original question.
To be certain I'm doing this right, let me clarify my situation.
1) It is to my tax advantage to report the i-bond interest as it accrues.
2) I understand that I have to keep track of the interest from all years.
So what I'm doing when I report this interest is to
1) Enter the name of the payer as : "I-bond accrued interest"
2) check: "My form has more info...."
3) Enter the accrued interest in box 3 (savings bond and treasury) and click continue
4) I do not check: "need to adjust the taxable income" on the next page.
In the year I redeem the bonds I will adjust the income as you suggested in the later part of your reply (which was very clear, thank you).
I can't upload a screen shot, but if I go to forms and view the Form B, it all looks correct to me, no errors are flagged.
let me know if I've got this wrong, and many thanks for your quick reply.
many thanks.
