Where do I add bond premium. The tt program said to remove it from transferred 1099 oid and put it on schedule a I am not itemizing so is that not something irs looks at as I am taking std deduction

[erojohn]

It is a municipal bond that matured and the premium was more than tax exempt amount

[DaveF1006]

You will actually report this as an interest payment.  I found this Turbo Tax link that outlines how to report this step by step..

1. Select Federal Taxes
2. Under Wages & Income select Interest on 1099-INT
3. Enter your 1099-INT information, select Continue
4. Select I need to adjust the taxable amount, select Continue
5. Enter the state that pays your tax-exempt interest, select Continue
6. Enter the amount of your premium adjustment as a positive number
7. Select the Reason for Adjustment

[erojohn]

Hi Dave I did as your said, but when I entered as a positive number it carried through onto schedule As an ABP adjustment  with  minus in the amount column. The originals as on a form called norm 1099 OID. I did pay more than face value for a the bond and I didn’t think you could take a loss on a municipal bond. This still doesn’t make sense if I show it on the adjustment box in a negative number it should show up as a positive number in schedule B. I would rather pay an extra $10 dollars than not and trigger an audit and penalty. Is this number supposed to be an income item or a credit?

[AmyC · Accepted solution]

Now, we know more!

Let's confirm that you did:

• Enter the 1099-OID following the steps above,
• you did adjust the amount in box 10 to be the same as the amount in box 2.
• The excess goes on Schedule A, line 16, other expense, but since you are using the standard deduction, you will not see a decrease in tax liability.

Instead, you can skip the step to enter the excess since you are not itemizing and that should solve your problem.

For more information, see pub 550

• It will be reported correctly
• You will have to pay the extra $10 in taxes.
• There will not be any negative interest on the Schedule B.

[Edited 02/21/20 | 7:45pm PST]

[rolanddawson2500]

I am also having this problem, and want to confirm the solution.

1) I imported 1099 Int and Div from Broker.

2) I have errors on Box 10 of the OID worksheets on 10+ OID worksheets, all of which show Box 10 higher than Box 6 and Box 11 when I do the Federal Review.

As I understand the solution, I correct box 10 on the worksheet to box 11 amount, and the difference should go to Schedule A?

I am not itemizing this year, but due to medical I will be in 2021, so I want to be sure that I have a solution that will move the difference from Box 6/11 to Schedule A.

So, how do I get the difference over to schedule A? (Not important in 2020, but will be in 2021.)

A separate clarification, I net purchased accrued interest (purchased interest) and box 13 on 1099 INT (Bond Premium on TEB) against total Tax Exempt Interest (Box 8 on 1099 INT). 

Clarifications would be appreciated, if I am doing this wrong.