The solution to your dilemma is hiding in plain sight. I am responding because it just took me a few hours to see the solution and hopefully this will help others like you and I . Here ya go : On the 1099-INT form that you received note that there are several boxes that could contain information ; note that the savings bond interest (should be) is reported in box "3" . Take a look at the turbo tax input page and you will see that you can check a box next to "My form has info in more than just box 1 (this is uncommon) " . Check the box and magically the input form will expand and you can enter the interest from the bond into the box 3 spot . After that , when you check the box to indicate that taxes on a portion of the interest has been previously paid , you will not receive an error message. Box one on form 1099-int is indeed for "ordinary interest" ; but the bond interest is not ordinary interest . Hope that helps !!
