Can I enter two interest adjustments on the same tax exempt bonds? Will the program allow me to enter both bond premium and accrued interest adjustments?

[Anonymous]

 I purchased tax free municipal bonds at a premium and paid accrued interest in the purchase price.  I can only enter one adjustment, then the program will not accept the other adjustment.  The choices for the adjustments include both adjustments, but I can only enter one of them.

[SteamTrain · Accepted solution]

You can as follows, but first things first.

IF you have a 1099-INT with any $$ in boxes 1, or 3 along with box 8....then you must create a separate 1099-INT for just the box 8 $$/premium/accrued interest.

______________

Then, on that sole 1099-INT, enter your box 8 $$, then the Premium Amort $$ in box 13, then the accrued interest on the followup page .  that takes it all properly.

I put $110 in box 8, $5 in box 13, and $5 of accrued interest, and the proper $100 shows up on line 2a of the new 1040

 (don't look at the 1040 "worksheet"...some mislabeled lien numbers there)