I followed the recommended steps to enter my accrued interest adjustment in the 1099-int adjustment box, and my resulting fed tax reduction does not seem to reduce my total tax as I would expect.
Either there is a rule I don’t understand about accrued interest I paid on purchase of my tax free Muni or TTax is not computing the expected result.
For example, I selected “Federal Taxes”>Interest on 1099-INT>entered my 1099 info>”I need to adjust the taxable amount>Continue> entered the stateS for this paid interest>entered the accrued int paid in adjustment box>reason for adjustment as My accured interest is included in this form 1099-int.
Then turbotax recomputed my new tax refund; But even though I am in the 29% tax bracket, it only reduced my taxes by 4.4% for the accurred interest adjustment portion.
So then I repeated my entries directly on the Form view of the 1099-int and it only did the same 4.4% reduction.
So it seems to me that I am not loosing a 25% reduction of my tax due to the accrued interest (29-4.4%) {Over $2000}. Is my thinking wrong or am I not entered something correctly or is there a TTax Premiium Disk version error??
