DaveF1006
Expert Alumni

Get your taxes done using TurboTax

Yes, there is a suggestion. When you recorded your 1099 INT, you would have needed to record an amount of your market discount in Box 10 of the 1099 INT. After you completed recording your entries on the 1099 INT, there is a follow-up screen that says "Let's see if the market discount affects your interest". Here you will select the link to IRS Publication 550 to see if your discount is taxable or not. If you determine it is taxable, you would adjust Box 3 in this section by the amount of the market discount. 

 

This will not show up as a separate entry on Schedule B but it does add to your taxable interest amount. As an FYI, Box 10 does not initially appear in your 1099 INT but you will check the box that mentions My Form has info in other boxes. Then Box 10 will appear and this is where you report your accrued market interest. If you report an amount in this Box, he following screen will appear to adjust your taxable interest.

 

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