My 1099-INT has amounts in box 1 (interest) and box 13 (bond premium). It lists accrued interest I paid when I purchased the bonds, and also lists unrealized cost basis information subject to amortization/accretion of bond premium (since I paid a premium for the bonds). When I input the form and click to adjust the taxable amount, it gives me options to select only one of: accrued interest is included in form, amortized a premium paid on a bond, or other reasons.
The interest I paid and the amortized premium amount combined would exceed the interest of the form. Should I split the 1099 form somehow so that I can put each option separately (the interest paid, and amortized premium), or should I add the accrued interest and amortized premium paid under "other reasons"?
And are there implications for doing either option for federal or state taxes? I was not sure what is the best way to put in the adjustments, or what happens to the amortized premium if I do not use it all for now (if there will be a capital loss next year for the full amount anyway if I do not amortize it for now). Thanks!
