It's a more complicated problem...the bonds I redeemed in 2021 had been transferred to me in 2012, and at that time the interest accrued to that date had been paid. So, technically, I should only owe taxes on the interest accrued since the 2012 date. However, in the time between receiving the "hard copy" bonds in 2012 and their redemption in 2021, I placed them in TreasuryDirect. TreasuryDirect has my 1099s (for four bonds) stating that I owe interest on the total amount of accrued interest. I haven't found any method on the TurboTax Deluxe to explain this problem to the IRS; I have even spoken to a professional at TurboTax, with no resolution other than to place the partial interest to be taxed in in the line for "adjusted interest," and wait and see if the IRS has an issue. And who really wants an audit. Any thoughts?
