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?

Forum|Forum|7 years ago
June 3, 2019
6 replies
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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.

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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.

TurboTax Premier Online

SteamTrain

Level 15

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 ..

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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.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

taxesohmy2017Author

Level 5

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