topic Accrued bond interest in Get your taxes done using TurboTax

Accrued bond interest

tryo123 — Tue, 10 Feb 2026 11:12:16 GMT

I purchased some bonds on the secondary market in 2023. I have earned $50 in interest and $720 in accrued interest.
I assume the $720 should be deducted from my taxable income, so I tried entering it in turbotax while filling my 1099-int. During the turbotax review, I see this warning:

Adjustments [$720] reported on this form 1099-int are greater than the total interest income [$50]. Review and make adjustments if necessary.

In the form turbotax shows me, its correctly identified the accrued interest I entered as accrued interest. Box A for accrued interest is checked.

Did I enter something wrong, or should I ignore the warning?

Re: Accrued bond interest

Mike9241 — Tue, 20 Feb 2024 05:44:58 GMT

the accrued interest deduction on the bond is limited to the interest income received on the bond in 2023. the rest would offset the interest received in 2024.

Re: Accrued bond interest

tryo123 — Tue, 20 Feb 2024 16:34:21 GMT

Thanks! Does this mean that for 2023, i should claim the amount equal to my interest from the bonds (50$), and jot down the remainder? Then in 2024, i can use the rest?

ie 720-50=670 is what will be left for next year?

Re: Accrued bond interest

RobertB4444 — Thu, 22 Feb 2024 17:42:21 GMT

That is exactly what that means.

@tryo123