Tax-exempt interest

[rstock]

Why does the amount shown on Form 1040 line 2a not equal the total of Tax-exempt Interest listed in the Interest Income Smart Worksheet of Schedule B?

[BillM223 · Accepted solution]

What are the amounts on line 2a (1040) and tax-exempt interest on the smart worksheet?

The instructions for the 1040 (page 25) can provide some additional clues:

- did you acquire a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a

- did you acquire a tax-exempt OID bond at an acquisition premium, only report the net amount of tax-exempt OID on line 2a

- any exempt-interest dividends from a mutual fund or other regulated investment company. This amount should be shown in box 12 of Form 1099-DIV.

[rstock]

That was it.  These items are not itemized in the worksheet.

Thanks.