If you have a 1099-INT that contains both box 1 and box 8 $$ showing....you need to first create two 1099-INT forms. One that shows just the box 1 thru 7 $$ , and another that shows just the box 8 $$. Then, you put the bond amortization amount into box 11 of whichever -INT form the bond amortization amount applies to.
Amortization is required on tax-exempt bonds,
........but is optional for taxable bonds, if you choose to amortize the premium for taxable bonds, you must do so for all of your taxable bonds acquired after 1988..
See pages 34 & 35 of:
http://www.irs.gov/pub/irs-pdf/p550.pdf
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
