That is one of the things I don't like about Turbotax. Even if you have a good grasp of the actual tax law and how income is supposed to be reported, it can often be mechanically difficult to get Tur...
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That is one of the things I don't like about Turbotax. Even if you have a good grasp of the actual tax law and how income is supposed to be reported, it can often be mechanically difficult to get Turbotax to accept it and file. Even for something as common as US government bond interest. I have worse problems with about a dozen K-1's to deal with coming up. Regardless, I have detailed records, so I know what was interest and what is not. I think I will adjust my cost basis to zero out gains on those 2 bonds using the options that TT has so that my actual gains/losses are correct. Then I will "make up" another 1099-int from the same institution so that I can report the interest income in the right category (line 3). When I send in my 1099 supporting documentation by mail, I THINK I will include a description of what I did and potentially my transaction statements from when I purchased those 2 bonds showing supporting what my accrued interest exactly is. Not sure if it is good idea to give the IRS the extra information, but I think it is better to report ALL my income in the right place, even if done in an odd way. If I run into problems, I will post back here so that others can benefit from this discussion. Thank you!