Need a Schedule B

Forum|Forum|5 years ago
March 27, 2021
3 replies
29 views

Hi,

I received a 1099-Int for Bond Interest Received from inherited bonds ($7000 in interest). I entered the bond interest and then offset the entry as "Previously Reported Interest as it was all included on the final tax return for my father. So I reported the $7000, and the corresponding adjustment -7000 but now there is no Schedule B generated as the total interest income on my return is less than $1500. Isn't the IRS going to flag it as it appears I am not reporting the interest. Without the Schedule B, they have no way of knowing I did report it but also checked the box that it was previously reported. What do I do?

Thank you!

NCperson

Level 15

whose social security number is associated with the form?

TX2021TXAuthor

Level 2

Mine. I was able to speak to a TT rep. According to Pub 559 I am to submit Schedule B to show the interest income and the offset "previously reported interest". She elevated it to a CPA who said just to send it in and if the IRS contacts me in the future, just send them the Schedule B. I told her no.... She then said to print it all out and mail it in. I told her no.....

She said an IT person from TT would be in touch with me.

I understand that if Interest Income is less than $1500, Schedule B is not required. However, the interest income is clearly $7000, but is reduced by the "previously reported interest" so I believe the IRS is going to be looking for that $7000 reported on a 1099-INT I received and schedule B is required per the IRS instructions.

I should add that the Schedule B was generated by TT, but doesn't attach to the return for submission to the IRS. That is why IT is involved, to see if there is a way to get it to submit with the return. If not, I guess I have to mail the return in.

dewilkison

Level 2

TurboTax does not send in Schedule B with the return. They say it must be more than $1500. This is not what the 1040 documents say for other forms such as 1099-r when withholding is included.

Sure enough the IRS will most likely charge you for not including the form. They will send you a letter saying you owe taxes. I have had this experience.

Looks like your only choice is to go to a tax preparer or send in the forms in the mail and NOT e-file using Trubo Tax. This is an inferior product. I have been with TurboTax since 1995. Wont use it again.