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Level 1
posted Mar 12, 2024 2:20:14 PM

Tax-exempt interest

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?

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1 Best answer
Expert Alumni
Mar 12, 2024 3:57:02 PM

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.

 

2 Replies
Expert Alumni
Mar 12, 2024 3:57:02 PM

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.

 

Level 1
Mar 13, 2024 7:47:37 AM

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

Thanks.