topic Tax Exempt Interest in Get your taxes done using TurboTax

Tax Exempt Interest

kohut007 — Wed, 11 Feb 2026 09:51:14 GMT

When i add up my Form 1099's for Tax Exempt Interest, the amount does not agree to line 2a on my 1040-SR return. Cannot find a reconciliation of the amount for line 2a, cannot find a form that shows a reduction in the amounts from the 1099. The Form 1099's amount is higher than the amount on line 2a. Befuddled!

Re: Tax Exempt Interest

DoninGA — Sun, 30 Jun 2024 14:45:10 GMT

Tax exempt interest is reported on the Form 1099-INT Line 8. If you have more than one Form 1099-INT with tax exempt interest you need to create another Form 1099-INT.

Go to Forms mode. When in Forms mode click on Schedule B to see how the interest is being reported.

Re: Tax Exempt Interest

M-MTax — Sun, 30 Jun 2024 14:49:06 GMT

However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year). Also, if you acquired a tax-exempt OID bond at an acquisition premium, only report the net amount of tax-exempt OID on line 2a (that is, the excess of tax-exempt OID for the year over the amortized acquisition premium for the year). See Pub. 550 for more information about OID, bond premium, and acquisition premium.

Re: Tax Exempt Interest

SteamTrain — Sun, 30 Jun 2024 14:55:54 GMT

Also, Don't forget box 12 on any 1099-DIV form too...that Adds into line 2a of the 1040.

Re: Tax Exempt Interest

rjs — Sun, 30 Jun 2024 15:39:41 GMT

It's not clear whether you are adding up the box 8 amounts on the actual 1099-INT forms, or the amounts in TurboTax. If you are looking at the forms, double-check the entries in TurboTax. See if you made a mistake entering one of the amounts.

If you are using the CD/Download TurboTax software, you can open Schedule B in forms mode to see a list of the amounts that were entered. You can also look at the individual Form 1099-INT Worksheets.

Re: Tax Exempt Interest

kohut007 — Mon, 01 Jul 2024 10:47:22 GMT

Thanks for the replies, but I found the problem in overlooking Bond Amortization actually reduced the reported Tax Exempt Interest. Was looking for a reconciliation form that would be provided by Turbo Tax and when i did not find one i posted the question in haste. Speaking of going to "View" i always use view and wish TT would provide a selection for that view to come automatically when i open my return.