I have taxable, tax-exempt, and accrued interest in 2022. Tax-exempt interest was entered in line 2a, 1040. The Accrued Interest paid was entered as an adjustment to the full amount of the taxable interest. It reduced the full amount of the taxable interest. However, the reduction is smaller than the accrued interest amount, although the taxable interest amount is far more than the accrued interest. The entering of accrued interest also reduced the amount of tax-exempt interest in line 2a, 1040. Can some one advise me why?
