topic How do I correctly enter my accrued market discount on a treasury bond as interest and not a capital gain in Get your taxes done using TurboTax

How do I correctly enter my accrued market discount on a treasury bond as interest and not a capital gain

hal20012001 — Sat, 28 Feb 2026 15:34:28 GMT

Re: How do I correctly enter my accrued market discount on a treasury bond as interest and not a capital gain

baldietax — Sat, 28 Feb 2026 16:16:14 GMT

Enter as reported on 1099B - ideally as “one by one” not summary level adjustment, the AMD will adjust the reported gain on Form 8949 / Schedule D and flip the AMD to Schedule B to be reported as interest

note this will not be automatically subtracted from state taxes as there is a lot of ambiguity on the taxability of AMD by state, if you think it should be exempt you need to handle that with a manual adjustment

Re: How do I correctly enter my accrued market discount on a treasury bond as interest and not a capital gain

Kachupa — Sun, 01 Mar 2026 15:43:42 GMT

I have the same problem. AMD is not appearing on Schedule B. Some of my AMD is reported in box 1f of 1099-B. Some is not. Some of it is on treasuries, some is not. I tried entering one of my 1099-B forms one-by-one rather than as a summary of multiple transactions, but the AMD still did not appear on Schedule B. Is this a bug?

Re: How do I correctly enter my accrued market discount on a treasury bond as interest and not a ...

MarilynG1 — Fri, 06 Mar 2026 01:41:14 GMT

Yes, when you enter a 1099-B with an amount in Box 1f for Accrued Market Discount, check your Capital Asset Sales Worksheet. It should show the transaction with an Adjustment amount for the amount of the Accrued Market Discount with a Code D.

The amount should automatically transfer to Schedule B, Part I, Interest. If this is not happening, delete your 1099-B and the Capital Asset Worksheet and re-enter manually.

Make sure your program is Updated.

@Kachupa