I purchased some bonds on the secondary market in 2023. I have earned $50 in interest and $720 in accrued interest.
I assume the $720 should be deducted from my taxable income, so I tried entering it in turbotax while filling my 1099-int. During the turbotax review, I see this warning:
Adjustments [$720] reported on this form 1099-int are greater than the total interest income [$50]. Review and make adjustments if necessary.
In the form turbotax shows me, its correctly identified the accrued interest I entered as accrued interest. Box A for accrued interest is checked.
Did I enter something wrong, or should I ignore the warning?
