DaveF1006
Expert Alumni

Investors & landlords

@Prethen Enter these individually according to the following instructions. 

  1. Enter the 1099-INT information as you normally would (except for the data in Box 13) and select CONTINUE.
  2. Answer the question about Special Private Activity Bond Interest (yes or no).  
  3. Select ADD MORE INTEREST INCOME and new 1099 INT entry fields appear.
  4. (Do NOT reenter the 1099 fields from step 1).  Look through your 1099 Composite forms from your broker to determine whether the premium was from a taxable bond or tax-exempt bond.  Look for the words “Bond Premium” on the statement. 
  5. If the premium is from a taxable bond then enter as a negative enter in Box 1.  If from a tax-exempt bond then enter as a negative figure in Box 8.  

NOTE:  This reduces the amount of interest that was earned as a result of the premium that was paid when you purchased the bond.

 

[ Edited 02/18/22|06:42 PM PST]

 

 

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