Get your taxes done using TurboTax

First, enter the 1099-INT exactly as you received it - be sure and put the savings bond interest in box 3 (not box 1). Then go to the next screen.

It will ask if any of the uncommon situations occur

check yes I need to adjust the taxable amount and go to the next screen

Enter the adjustment amount and check the box that says savings bond interest previously reported.

See screen shot