@markfromAustin
Correct, that's how you have to deal with it.
It would be great if the TTX software staff would include three separate selections on the follow-up page, for accrued interest paid to the seller. One for box 1 $$ (when Corporate bonds & brokerage CDs are involved), one for box 3$$ (Treasury Bonds/Notes), one for box 8 $$ (Muni Bonds). Then we wouldn't have to mess with it, and the software wouldn't be mis-assigning for folks who don't realize what's happening.
But I'm not sure how to get this implemented...i.e. what software manager needs to get poked to see it's a real problem (for some of us).
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*