I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

This is for my 2018 Tax Return.  The info I attached below apparently has not been updated because they still refer to Line 8b being tax exempt and on the new 1040 form for 2018 Box 2a is now tax exempt. But anyways. I want to make sure I am reading the information correctly.

Box 8 contains the tax-exempt interest paid. This amount is entered on Line 8b, Form 1040.

Box 13 contains (for covered non-taxable securities), the Bond Premium amount for the year. If an amount is reported in this box, the taxpayer will reduce the non-taxable interest reported on Line 8b (Form 1040) up to the amount reported in Box 8. Any amount in Box 13 that exceeds the amount reported in Box 8 is considered an excess amount and is a non-deductible loss.

======================================

Also on the screen entry for the 1099-Int would I need to enter what is reported in box 13 $500? I am thinking I would subtract $500 from the $1237.50 and report $737 on Line 2a - tax exempt interest.

Thank you in advance for your assistance.

6 Replies
Highlighted
Level 15

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

IF you are using the software...you would put in the $$ exactly as shown on your 1099-INT form  (1237.50 in box 8 and $500 in box 13).  The software automatically reduces the 1099-INT  box 8 value by the box 13 value before it puts in the line 2a value on the new 2018 form 1040.  That's what the software is for...doing those calculations and putting the correct values in the proper places ..

_________________________

IF you are doing your tax return manually on paper...then yes, you would subtract 13 from box 8 before putting it on line 2a of the form 1040.   but you have to add in any other 1099-INT's with box 8 values, or 1099-DIV forms with box 11 values into the line 2a value too.

Highlighted
Level 2

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

The software is not subtracting the amount . From the 1099INT box 8 when I input $1237 I look at the return and $1237 appears on line 2a tax exempt which it should,  now when I go back into that same entry, I keep the entry from box 8 but now enter the figure that appears in box 13 of $500. When I go back to view my 1040 line 2a still shows $1237 NOT $737 which I would think the software would automatically calculate these entries. These are the only two 1099INT entries I have.

Can someone verify if this works on their version of Turbo tax before I give them a call.

Thank you
Highlighted
Level 15

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

Desktop Premier works OK....but you do have to be careful to put it in box 13 and not box 11 during the interview....some people mistake which box the label refers to..

Checking Online software next,
Highlighted
Level 15

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

Online seems OK too.  But easier to tell which is box 11 vs 13 with the Online software..

entered 1000 in box 8 and 500 in 13, and only 500 shows up on the form 1040.
___________________________
Two things to try.....

1)  IF you are using the Online software. Delete the 1099-INT entirely. Check line 2a to make sure it's empty, then re-enter the 1099-INT from scratch.  
..............(don't use the tablet mobile "App" either, make sure you log into the Online software thru a browser on a large tablet or full computer)

2)  IF you are using the desktop/download software on a full MAC or Windows computer...the early versions had some line numbers mislabeled on the 1040 "worksheet"  (not on the actual 1040).  Make sure you run a full software update, as those mislabels were fixed weeks ago. Then check and do the same thing as in #1...delete the entire 1099-INT form...check 2a, then re-enter it manually again and re-check  (making sure the $500 is in the correct box)

Highlighted
Level 2

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

Entry was correct. Box 8 and box 13 were the only two lines I made the entry. Box 11 is blank.
Highlighted
Level 2

I have a 1099-INT box 8 Tax Exempt interest $1237.50 & box 13 Bond Premium on tax-exempt bonds $500.21, would I minus $500.21 from $1237.50 & report $737 on 1040 line 2a?

Update: I just wanted to say THANK YOU! to all who assisted with this post.  I followed the steps listed here and the calculations finally came out as they should have.  THANK YOU! Have a nice weekend!
Privacy Settings