….and...when you file the 1099-INT "for" 2019 (in 2020), …..IF the 1099-INT you receive from the broker has a mix of box 1, 3, and 8 values on it (in any combination)?
.........….Then, in the software, you need to take your box 3 value of 1200 (and box 12 too if there is any $$ in it) and put it in it's own 1099-INT form. On a page after the main form, you check a box "I need to adjust the taxable amount", and on the page after that you will enter the $100 of accrued interest, and the software then adjusts the amounts appropriately on the federal and state tax forms.
The same procedure applies if you ever buy bonds with accrued interest for corporate bonds (box 1&11) or Muni bonds (box 8&13). You break out the total values reported in those boxes into their own 1099-INT if you need to report accrued interest for any of them.
Why? if you don't do that, the software will proportionate the accrued interest between the values in boxes 1, 3, and 8 if you leave it on a combined 1099-INT...and that will report it all wrong.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
