@RobertB4444
I was thinking that if you left OID box 10 unchanged, you would still get the benefit of a deduction for the premium. Is that not the case?
In my case, the OID for this bond shows -
Box 10 = 310.41
Box 6 = 15.76
Box 11 = 15.76
I re-read rjmswarren's post and it bolded what you might be referring to below -
The instructions very definitely DO NOT say ANYWHERE that it is OK for the payer to report the semi-annual gross tax-exempt income in 1099-INT Box 8, report $0 premium in 1099-INT Box 13, and then turn around and report the premium associated with that gross income in a completely different form (in this case 1099-OID Box 10) where the premium will be ignored by tax-prep software rather than used to compute the correct net tax-exempt income.
When I inserted 310.41 in box 2 (a fix previously mentioned elsewhere), the amount of my tax refund did not change, so I was assuming that the software was recognizing the premium even with the error in place.
