I am regretting buying a TIPS bond for the first time in 2021! I downloaded my 2022 1099-INT from Treasury Direct.
For the box labeled "Interest on US savings bonds and Treas obligations (Ref Box 3)" it shows two interest payments totaling 13.24.
For the box labeled "Bond Premiums on Treasury obligations (Ref Box 12)" there is one entry totaling 138.10.
I entered both these numbers in Turbotax Deluxe (downloaded) on a 1099-INT form in the appropriate boxes, and it complains during the Smart Check as follows:
Schedule B - Form 1099-INT (Treasury Direct): Bond premium on treasury obligations.
The bond premium adjustment of 138.10 reported on this form 1099-INT (Treasury Direct) is greater than the related Box 3 interest on U.S. savings bonds and treasury obligations of $13.24.
You must reduce the bond premium amount reported on this 1099-INT to the amount of Box 3, and report any excess on Schedule A (subject to any required limitations).
I am completely stymied. I am clearly dealing with this TIPS reporting incorrectly but I have no idea how or what to do. So many people have TIPS bonds there must be a straightforward way of reporting this. I would appreciate help/advice.
(separately I have entered the OID info on a 1099-OID and that worked fine)
