Thank you @DianeW777
To follow up, I am deciding what is the best way to offset my 1099-INT using both amortized bond premium and also accrued interest paid. When I select to adjust the taxable interest of the form, it gives me an option of selecting amortized taxable bond premium, accrued interest paid, or other reasons (if I were to combine both amounts it seems). I noticed that when I put in the amortized bond premium option, it also lowers my NJ state tax slightly. When I put in amounts under accrued interest paid only, or combine the premium and interest paid amounts under other reasons, it does not decrease the NJ taxes. So I was thinking of splitting the 1099-INT into two separate entries, one to use up the amortized premium for this bond (and also lower my NJ taxes that somehow are impacted by this choice), and then the other to use accrued interest paid to lower the taxable interest further. Does that approach make sense? Thanks again for your help, I appreciate it.
