UPDATE: I took a look at how my TD Ameritrade account handled this same situation this year. Turns out they seem to have done it correctly, unlike Schwab (at least as far as TT is concerned). The bond interest was on 1099 INT along with the bond premium. No error. I'm not a tax person but this seems to make more sense. There appear to be many other incomprehensible tax rules that could make this more difficult but fortunately they didn't seem to apply. Also, in my case these were tax-exempt bonds but I'm not sure if that makes a difference. Just thought I'd pass this along.
