The amortization of a bond premium on a tax-exempt bond is the excess on its face value or the premium and part of the premium can be deducted from the interests. To report the amortized bond premium by:
- Login to Turbo Tax
- Jump to Income and Expenses.
- Click Interest on 1099-Int, click edit/add.
- Enter 1099-Int information, click continue.
- On question, "Do any of uncommon situations apply?". choose "I need to adjust interest reported on my form:.
- The next screen, "Tell us about your interest adjustment", enter the adjustment amount.
- Scroll down under Reason for adjustment and choose "I amortized a premium paid on a tax-exempt bonds".
