I have four 1099-INTs which include supplemental information with Accrued Interest amounts. I have entered each accrued interest amount for each 1099-INT into TurboTax in the appropriate place through the Step-by-step input (as an adjustment amount labeled "My accrued interest" under the Reason for Adjustment menu).
The sum of the four accrued interest amounts is $8139.28. But it shows up on Line 1 of my Schedule B Part I - Interest as an Accrued Interest adjustment for only $3742.72. It is not possible to access the calculation or data to understand why more than half of my accrued interest adjustment is being excluded.
By messing with the amounts, I have determined that the 1099's which are being adversely affected are the two which have some tax-exempt interest reflected, along with taxable interest on the same forms. However, the accrued interest has nothing to do with the tax-exempt bonds which were purchased many years ago (so wouldn't have accrued interest in 2024) and, furthermore, were purchased as new issue bonds, not on the secondary market.
Can you tell me what is behind the calculation for the accrued interest adjustment and help me determine if this is an error? And if it is an error, LMK how I can override it.
