This is for my 2018 Tax Return. The info I attached below apparently has not been updated because they still refer to Line 8b being tax exempt and on the new 1040 form for 2018 Box 2a is now tax exempt. But anyways. I want to make sure I am reading the information correctly.
Box 8 contains the tax-exempt interest paid. This amount is entered on Line 8b, Form 1040.
Box 13 contains (for covered non-taxable securities), the Bond Premium amount for the year. If an amount is reported in this box, the taxpayer will reduce the non-taxable interest reported on Line 8b (Form 1040) up to the amount reported in Box 8. Any amount in Box 13 that exceeds the amount reported in Box 8 is considered an excess amount and is a non-deductible loss.
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Also on the screen entry for the 1099-Int would I need to enter what is reported in box 13 $500? I am thinking I would subtract $500 from the $1237.50 and report $737 on Line 2a - tax exempt interest.
Thank you in advance for your assistance.
