The work around posted by rjmswarren on March 31, 2022 says –
After several failed attempts to get Schwab to send me and others corrected 1099’s, I have decided to –
(1) change the 1099-OID Box 10 value to 0,
(2) AND TO REPORT in TurboTax for the Schwab 1099-INT a positive “adjustment to interest” of type “T --- Bond premium on tax-exempt”. The positive amount of the adjustment is the total amount of the 1099-OID box 10 value that had to be set to 0.
Question: Instead of setting OID box 10 value to 0, would it make sense to make a 2nd adjustment be made as follows? -
REPORT in TurboTax for the Schwab 1099-OID a negative “adjustment to OID interest” of type “B --- Bond premium”. The negative amount of the adjustment is the total amount of the 1099-OID box 10 value.
This can be done in Forms View at the bottom of the Form 1099-OID Worksheet under 'Adjustments to OID Interest'.
The only advantage in doing this would be to have two off-setting adjustments.
This still seems to still allow TurboTax to compute the correct net tax-exempt income for Line 1040 Line 2A. However, looking at the Form 1099-OID Worksheet in Forms View, the Box 10 error has gone away, but the adjustment amount is now showing up in red indicating an error here.
The new error message is saying –
Schedule B – Form 1099-OID (CHARLES SCHWAB & CO., INC): Adjustment amount should be greater than zero for CHARLES SCHWAB & CO., INC.
Edit/Add:
As mentioned above, I saw this feature in forms view at the bottom of the Form 1099-OID Worksheet under 'Adjustments to OID Interest' and it seems like it might be appropriate. But, I have no accounting expertise - and I'm not sure if using this feature as described above makes any sense??? Don't worry about hurting my feelings if this is a bad idea : )
