Get your taxes done using TurboTax

It depends. When you buy bonds between interest payment dates and pay accrued interest to the seller, this interest is taxable to the seller and reduces your taxable interest because you used funds to purchase that were already taxed. This reduces your taxable interest.

• Where do I enter my Form 1099-INT?

1. First select to enter the interest yourself.  When you reach the screen 'Do any of these uncommon situations apply?' 
2. Select I need to adjust the interest reported on my form.
3. Continue > Enter the accrued interest as a positive amount
4. Select My accrued interest is included in this 1099-INT
5. Continue to finish your entry

Once completed you can view your 1040 form, line 2b for the taxable interest amount.

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

1. Select Tax Tools
2. On the drop-down select Tools
3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
4. On the left sidebar, select Preview my 1040 

For TurboTax Desktop, change to 'Forms' and review the forms