Where do i enter accrued interest on taxable bond purchases from a 1099

[CarolC]

You can enter the accrued interest adjustment in the 1099-INT section of TurboTax. 

Follow these steps to make an adjustment for the accrued interest paid on your taxable bonds:

1. Select Federal Taxes
2. Under Wages & Income select Interest on 1099-INT
3. Enter your 1099-INT information, select Continue
4. Select I need to adjust the taxable amount, select Continue
5. Enter the accrued interest paid in the Adjustment box
   
6. Select the Reason for Adjustment as My accrued interest is included in this Form 1099-INT

[taxeddave]

There must be a bug related to the adjustment entry box where we are supposed to enter accrued interest.  I can NOT get the box to accept any entry!  I'm using T-TAX Premier, currently at version 2019.r14.032, build date: Feb 6, 2020 at 5:18:21 PM.

Thanks, Dave

[Konaguy1]

But there is a need also to be able to enter accrued interest on non-taxable bonds- and I do not know how to

do this unless by overrides. This is necessary because tax free interest is included in MAGI, and accrued should

reduce it. Failure to do so may cause several 1000's in increased IRMAA taxes.

[WendyN2]

You deduct the accrued interest paid at purchase from the tax-exempt income total on your Form 1099 to arrive at the amount that should be entered on line 2b of your 1040. 

[tsyoung4]

Using the existing Turbotax screens, there is NO WAY to specify whether the adjustment is for the taxable or non taxable portions of the interest income. The work around suggested by Turbo tax is to enter separate entries for the taxable and non taxable portions of the interest (each entry consists of only 1 type of interest). Being able to enter an adjustment for each type of interest income would be very nice (future) functionality to have.

[cc2345]

Thank you!

[dalboy]

how do you create the separate entries for taxable and non-taxable portions for the adjustments?

also do i anything for bond premiums for tax exempt bonds?

[kraut35]

Tried that. It doesn't work. Only part of the accrued interest was deducted and it wasn't listed above the line as a Accrued Interest adjustment as is required by IRS Regs.