rjs
Level 15
Level 15

Get your taxes done using TurboTax

You have to pay tax on the gross amount of interest in box 1, not the net amount that you received. You cannot subtract the fee. Enter the 1099-INT as it is. Changing the amount in box 1 will definitely cause issues with the IRS. It's the same as if they paid you the full amount of interest, and then you wrote a check to pay the fee.