I also would be most comfortable omitting the amt in box 10 (or reducing to the amount in box 2, if any), rather than entering something in box 2 that is not the case. My understanding is that the bond premium is something that would lower your taxes, if you had any taxable interest. That's why they tell you to enter it on schedule A instead. If you are itemizing. I just don't understand why, if this is the proper thing to do, that TurboTax doesn't do this step for you, or explain it to you right there as you are entering the 1099-OID. Seems like quite a flaw and many of us are uncomfortable about how the "error" is managed and it is quite confusing.
