@watnima
Well...You said they were Muni bonds...as such, the $$ posted in box 8 of a 1099-INT form are (usually) not taxed in a federal tax return in the first place, and will not be taxed at a 25% marginal rate (if that's where your overall income puts you).....thus declaring the accrued interest for those doesn't affect your Federal taxes at all. (the only time any of it "might" be taxed is if there are also $$ in box 9)
EXCEPT...except if you are retired, and getting SS income (SSA-1099)...where it might affect the % of SS that is Federally taxed...but whether it affects that at all, depends on how much other income you have. SO if you see some reduction in your taxes after entering the accrued interest, and are getting monthly payments form Social Security..check line 6b before and after entering the accrued interest, amount.
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Box 8$$ before/after entering accrued interest, can also affect medical tax credits from Obamacare...but again, that's a different calculation.
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And yes...splitting the 1099-INT box 8,9,13 $$ into it's own 1099-INT is needed to be done by you in the software, before declaring the associated Muni bond accrued interest you paid to the seller, if you had any $$ in boxes 1 or 3 too.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
