Deductions & credits

@Os4 

I think I disagree with it being reported in 2023.  Here's my evaluation of the issue.

The directions state (in a handwaving manner) that you report the accrued interest paid to the seller...if you received a 1099-INT that includes the interest that you paid to the seller.

Since you did not get paid any interest until 2024, the 1099-INT that includes that interest will not be reported to you until you get the 2024 1099-INT next year.  The 1099-INT will include the full amount of interest received at for 2024...some of which you pre-paid to the seller of the bond.

(But yes, if your 2023 1099-INT includes interest in box 3 "From that bond"...then you could report it for 2023.  The Supplemental Info sheets usually tell you if they included any from that bond)

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Take for example, a person who has bought a bond as you did, and had no other Treasury Bonds/Notes for 2023.   Box 3 on the 1099-INT would be empty for 2023, and attempting to report the accrued interest paid to the seller on that 2023 1099-INT would be an effective loss...for box 3.  The IRS isn't allowing that.

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 A point of warning for entering in the software though....if the 1099-INT you receive contains box 1 or box 8 $$ in addition to the box 3 $$ from your Treasury Bond....take the box 3 $$ (and box 12 $$ if any), and create a separate 1099-INT with just the box 3 (&12) $$, and report the accrued interest for that separate 1099-INT.  IF you don't do that, the accrued interest you report will be (improperly) divided proportionately between the box 1,3&8 amounts.