Richb89600
Returning Member

Get your taxes done using TurboTax

My bonds were in-state Muni, (double-) tax free.  I did what you did -- changed the 1099-OID , box 2 to the same amount as in box 10, and ran it with no errors, and no change to my taxes. 

I *think* these are only 1099-OID worksheets, but, even if they aren't, all the interest is double-tax free, so, as I understand it, the combinations of Box 2 and Box 10 are intended to offset the taxable interest by the bond premium.  Since the interest is already tax-free, offsetting it has no effect (since there is no tax anyway).  I will turn it in this way -- If I'm wrong, I'm sure the Feds will correct it.