@MRies129
And...an additional caution.
If you have a 1099-INT that has $$ in boxes 1, 3 and 8...or any combination of 2 of them...
Then...before declaring the accrued interest in the software, you must break out the $$ in the appropriate box into its own 1099-INT form, in order to declare the accrued interest for that bond type......if you don't, the tax software will apportion the accrued interest $$ among all three boxes according to what $$ amounts are in them.
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Example: You have $1000 in each of boxes 1, 3, and 8 on the 1099-INT. BUT you only have accrued interest to declare on the $$ in box 8 (Muni bonds). In order for those $$ to be treated correctly, you have to put ten box 8 $$ in it's own separate 1099-INT (as-if from the same issuer) and then declare the accrued interest on that separate 1099-INT . IF you don't do that, the accrued interest will be improperly divided up among the box 1, 3 and 8 $$....proportionate to the amounts in each (in this simple example 1/3 of the accrued interest reported would be applied to each).
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Someday, TTX software folks will provide 3 separate worksheet lines to indicate which box the accrued interest is supposed to be applied against...but so far they haven't done so....and we have to adjust things appropriately.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
