Verify your entries. The adjustments box is opposite what you think. A positive amount subtracts.
The seller of the bond reports the accrued interest while the purchaser will deduct the accrued interest from the 1099-INT.
You can enter the accrued interest adjustment in the 1099-INT section of TurboTax. You will see the adjustment on Sch B.
Follow these steps to make an adjustment:
- Select Federal Taxes
- Select Wages & Income
- Edit your 1099-INT information
- Select Continue
- Select I need to adjust the taxable amount, select Continue
- Enter the accrued interest paid in the Adjustment box - enter a positive amount to subtract the interest
- Select the Reason for Adjustment as My accrued interest is included in this Form 1099-INT -my accrued interest is included.
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