@popomama
Did you figure it out?
Box 12 should be the exact amortized premium for the time you held the bond in that year...so it doesn't need adjusting any further. Then the Accrued interest is added separately in the followup page.
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Note about Software Complications:
The possible complication, though it is a software complication, is that IF your 1099-INT from that provider reports interest for several categories..like in any combination of boxes 1, 3, and 8 ...all in the same 1099-INT form, you should remove the interest for the bond type you just purchased, and put it on a separate 1099-INT reporting just the $$ associated with that particular bond type and then put the accrued interest declaration on that separate 1099-INT. Example: if the accrued interest was for a treasury bond you bought, and the financial institution put $$ in boxes 1, 3, and 8 for other holdings you have...for a treasury bond, you would remove all of the box 3 $$ (and box 12 $$ too if any shows), and create a separate 1099-INT from that provider showing only boxes 3 (and 12) and declaring the accrued interest paid for the bond on that 1099-INT form (a followup page to the main form).
IF you don't do that,the software will divide up the accrued interest proportionally among boxes 1, 3, and 8. Yeah, would be nice someday if TTX would allow separate entries for accrued interest...targeted to the proper box.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
