Tax exempt interest entered in step by step not flowing to page 1, Line 2A

Forum|Forum|5 years ago
March 6, 2021
5 replies
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When entering 1099 information in Step by Step, tax free interest is not flowing to the Form 1040 - please help

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SteamTrain

Level 15

1) First, you need to define whether you are talking about box 8 on a 1099-INT form? or box 11 on a 1099-DIV form ? both of those may add in together into line 2a.

2) IF it's for a 1099-DIV form, just delete that particular 1099-DIV form, and enter the data for the form again manually...do NOT import it into the software ..... in case there is a garbled file being imported .

3) If it's box 8 on a 1099-INT, you might have to do the same thing.....BUT, if there are $$ in box 13, or if you are reporting "accrued" interest for a tax-exempt bond purchased in 2020...those entries can validly reduce the amount of the box 8 value that transfers to line 2a on the 1040...rarely a zero transfer, but it can happen. ((((and for reporting accrued interest for a bond purchased in 2020, you must wait until you actually get your first interest payment on that bond))))

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

20015

Level 2

I have tax exempt interest (from a 1099 INT), tax exempt interest dividends (from a 1099 DIV). and tax exempt OID (from a 1099 OID). They have been correctly entered into easy step and I can see them summarized on the Sch B worksheet but the totals of all this are not carrying over correctly to line 2a of the 1040. That line has a lower amount whose components I cannot derive. Any thoughts on this?

SteamTrain

Level 15

The only adjustments lower, that I can think of, would be from 1099-INT forms (Unless the -OID $$ didn't come over for some reason)

___________________

On any of your 1099-INT forms.

1) Any $$ in box 13 of the -INT reduce the $$ on line 2a of the 1040

2) Any $$ on the follow-up page for "Adjustments"...like for accrued interest paid on a bond purchased, usually during 2022, that lowers the value on 2a of the 1040

(but one has to take care in entering Accrued Interest, on that page. Cannot have any two (or 3) boxes of $$ in 1and/or 3 and/or 8, and also indicate accrued interest and have it applied correctly).

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

20015

Level 2

I found the solution, as follows:

Total tax exempt interest plus total tax exempt dividends less bond premium on tax exempt bonds plus tax exempt OID (original interest discount) = line 2a on the 1040. All are various lines on the 1099 INT, 1099 DIV and 1099 OID.