I need help. In 2022, I purchased a number of tax free municipal bonds and paid accrued interest and premiums. The premium shows box 13 of the 1099-INT and is used in turbotax to reduce the tax free interest as it is received over time. That is not an issue.
The tax exempt accrued interest shows as "amounts not reported to the IRS". The accrued interest was paid in 2022 and the coupon interest is paid in 2023. The reported 1099 tax free interest is included in my Modified Adjusted Gross Income (MAGI), which would now be overstated in 2023.
The inflated MAGI impacts a number of areas, including increasing my medicare premiums through IRMAA. Shouldn't I be able to reduce my reported tax free income by the amount of accrued income paid? Any help is appreciated.
