IF your 1099-INT contains $$ In multiple boxes, 1 and/or box 3/and/or box 8? .....then When you buy any bonds with accrued interest, you should create a separate new 1099-INT for that bond type.
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1) Thus, for your situation, you would remove any $$ in boxes 8 (and 13 if present) from that 1099-INT, and create a new one manually for that 1099-INT issuer, which contains only the box 8 (&13) $$.
2) THEN, on one of the pages after the main form, you check box "We need to adjust the taxable amount" (yeah...it's not taxable ...ignore that subtle point...Online software doesn't have the word "taxable" in it, but it's the same choice) .
3) Next page is indicating what state or states the box 8 income came from (choose Multiple States for all of it, unless you had only one bond and it was your own state....but that's a different discussion if it was Multiple States, and you want to break out your own state's interest)
4) FINALLY on the next page you enter your $$ of accrued interest and choose the selection "My accrued interest is included in this 1099-INT"
(LATER: CRUUUUUDDDD>>>>That's the order in Desktop software . Online software switches the order of steps 3 & 4 )
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
