That is because you probably have more than one kind of interest listed on the interest statement (1099) for which you want to report an interest adjustment. As explained, in fine print, on the Report Interest Adjustment page in TurboTax EasyStep, the amount of adjustment will be prorated between the different types of interest income. If you want this adjustment to apply to only one type of interest income, you have to create a separate 1099-INT for each type of interest income and enter the adjustment for the appropriate type of interest income.
It took me a while to finally read the fine print. IMHO, it is quite sloppy from TurboTax to require the users to separate a 1099 into two forms. The software could have easily accommodated the proper treatment of accrued interest by asking to which interest does the adjustment apply.
