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elvinhayns
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What is "EPB" as it relates to tax-exempt bond income?

 
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What is "EPB" as it relates to tax-exempt bond income?

If you are referring to APB, that stands for Amortized Bond Premium.  This code appears on your tax return when you have taxable bond premium amortization to report.  The APB term does not appear for tax-exempt bonds.

For taxable bonds, IRS Publication 550 states "Report the bond's interest on Schedule B (Form 1040A or 1040), line 1. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Below this subtotal, print "ABP Adjustment," and the total interest you received. Subtract this amount from the subtotal, and enter the result on line 2."

For tax-exempt and taxable bonds, this adjustment happens automatically when you enter the amount from Box 13 and Box 11 in the 1099-INT section of TurboTax.  The adjustment will reduce your amount of reportable tax-exempt interest on Form 1040, line 8b.  For taxable bonds, the adjustment will reflect on Schedule B, Part 1.

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What is "EPB" as it relates to tax-exempt bond income?

If you are referring to APB, that stands for Amortized Bond Premium.  This code appears on your tax return when you have taxable bond premium amortization to report.  The APB term does not appear for tax-exempt bonds.

For taxable bonds, IRS Publication 550 states "Report the bond's interest on Schedule B (Form 1040A or 1040), line 1. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Below this subtotal, print "ABP Adjustment," and the total interest you received. Subtract this amount from the subtotal, and enter the result on line 2."

For tax-exempt and taxable bonds, this adjustment happens automatically when you enter the amount from Box 13 and Box 11 in the 1099-INT section of TurboTax.  The adjustment will reduce your amount of reportable tax-exempt interest on Form 1040, line 8b.  For taxable bonds, the adjustment will reflect on Schedule B, Part 1.

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