What do I do with Box 11 (Bond Premium (covered lots) on a 1099-INT; and what do I do with Box 10 & 11 on 1099-DIV (exempt interst div and spec private activity div)

[dasch4243]

The first item with the 1099-INT was an account at US Bank (I think it was some kind of bond account) I inherited and it matured.  I just took the cash and put it in my Ameriprise account.

[CherylW · Accepted solution]

To enter Box 11 of 1099-INT:

To enter the bond premium in Turbo Tax, 

1. Go to Income. 

2. Go to Interest and Dividend Income. 

3. Click Start or Update next to Interest on 1099-INT. 

4. Click on the box My form has info in more than just these boxes (this is uncommon). 

5. In box 11, Bond Premium, put the amount.

To enter exempt interest dividend and specified private activity in Turbo Tax:

1. Go to Income. 

2. Go to Interest and Dividend Income. 

3. Click Start or Update next to Dividends on 1099-DIV. 

4. Click on the box My form has info in more than just these boxes (this is uncommon). 

5. In boxes 10 and 11 put the amounts. 

[kaseibert]

this doesn't help me to enter the info for a partnership on a 1065  turbo tax is highly inefficient for using 1099s on 1065 sch K it is a nightmare. where does the box 11 go on the 1065 as they don't offer me a 1099 in business turbo tax 1065 5

[tagteam]

@kaseibert Box 11 from which 1099? 

[tcglax]

Here is my question, maybe you know. If 1099 entries are as follows:

   line 1 = $4,816.65

   line 2 =       814.73

Turbotax shows interest = $4,206

Basically, Turbotax is only deducting 75% of bond premium from total interest. I have looked every where in IRS regulations. Is that what is supposed to happen? Just curious on what the rules are.

Thank you very much!!!!   Tom

[DianeW777]

A penalty for early cash out or redemption of a bond or certificate of deposit is considered an early withdrawal penalty in IRS terms.

Once you enter the penalty for early withdrawal in the 1099-INT, Box 2 (must select the checkbox for 'My form has info in other boxes (this is uncommon)', this becomes an adjustment to income.  The full amount of interest will show on the 1040, Line 2b and the adjustment is entered on Schedule 1, LIne 17.  

You can use the Preview My 1040  tool to view before you complete your return.

By using the Tax Tools you can take a quick review of your 1040:

• To find Tools: 
  • Sign into your TurboTax account and open or continue your return. 
  • Select Tax Tools in the left menu. 
  • You'll find Tools beneath Tax Tools.
  • Select View Tax Summary
  • Select Preview My 1040 (left black panel)

See the image below showing your adjustment - scroll to the Adjustments to Income section.