Enter No when TurboTax asks you did you sell stocks or bonds. When bonds are redeemed, the principal is not taxed, only the interest which is why you received the 1099-INT Form. Please follow the steps below to enter your 1099-INT Form.
- Open or continue your return
- Search 1099-INT in the search bar at the top of the screen (lowercase also works)
- Select the Jump to 1099-INT link
- Answer Yes to Did you have any interest income?
- If you see Your investments and savings, select Edit next to the correct 1099-INT or Add investments
- On the Get ready to be impressed screen, select Continue
- Select Enter a different way
- Select Interest 1099-INT and Continue
- Select Type it in myself
- On the next screen, input the required information and select Continue
- At Do any of these uncommon situations apply? select the appropriate answer and Continue.
For additional information, please review the TurboTax article Guide to Investment Bonds and Taxes.