@watnima
Well...unless you have SS income too, the reduction due to accrued interest (meaning what you paid the seller of that Muni bond in 2022)...that wouldn't affect your Federal taxes at all...or minimally if some was also (edited) box 9 $$ on a 1099-INT.
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There is an entry problem though, when entering accrued interest for any type of bond on a 1099-INT.
IF you have 2 or more boxes entry $$ for boxes, 1 and/or 3, and/or 8 on the same 1099-INT....you need to break out the $$ for that bond-type into its own 1099-INT.
Thus for accrued interest for a Muni bond you purchased in 2022,......if there are also $$ on that 1099-INT in either box 1 or box 3...you need to remove ALL the $$ in boxes 8, 9, and 13 into its own 1099-INT, and then report the accrued interest on that separate 1099-INT.
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Accrued interest for Muni bonds purchased during the year, does not normally affect taxes due.....except in some cases where it affects the % of SS income that is getting taxed...and sometimes AMT if there are $$ in box 9 of the 1099-INT.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
