Solved: 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?
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Level 1

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?

 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.

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Level 15

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?

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)

View solution in original post

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Highlighted
Level 15

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?

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)

View solution in original post

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