@Jim H
Correct. That is how it is supposed to be done.
You don' subtract the accrued interest you paid out when buying the bond, until the actual tax year in which you receive the first interest payment from that bond.
Thus, in early 2025, you will enter your 2024 1099-INT for that bond into the software, and then declare the accrued interest at that time to be subtracted.
__________
A word though, about entering that information into the software....if that treasury bond & interest is in a brokerage account, you may receive a 1099-INT that has a mix of various interest in boxes 1, 3, & 8.
For TTX software, you would need to remove the box 3 $$ and create a separate 1099-INT from that brokerage, with only all of your box 3 $$ in it, then report the accrued interest properly on a follow-up page to that separate 1099-INT. IF you don't do that, the accrued interest would end up being improperly apportioned among the $$ in boxes 1, 3, &8.
But..IF the Bond(s) are in a Treasury Direct account, then their 1099-INT reports only box 3 $$ on their 1099-INT, and the subsequent reporting of the accrued interest in the software isn't an issue.
_______
I keep a separate spreadsheet each year, where I indicate which purchased bond's accrued interest, I have to wait until the next year to report & subtract.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
