Agreed. I do NOT understand why we were told to put it on Sch A, since Sch A is for deductions and like you, I will use the standard deduction. I also agree that this feels like an error by TurboTax. I’ve done exactly what the program told me to do, but then it gives me an error message. Something’s wrong somewhere and I believe it’s on TurboTax. Or possibly by the investment company that issued the composite 1099.
I don’t really know whether the $16 Bond Premium in box 10 of the 1099‑OID is income or not. BUT – to work around the error that TurboTax thinks I’ve made, I moved the $16 to Box 2 and called it “regular interest” because I don’t know if it’s tax free or not. That information is not on the 1099-OID, so I just made a guess. $16 is not going to affect my taxes, one way or the other, but I assume it’s income and that means it should be reflected somewhere, somehow, on the tax return. Omitting it entirely certainly will not trigger an audit, but I just feel better about including it.
As you said, this seems like an incorrect solution. I will await further feedback from TurboTax. Or whomever...
