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Level 2
posted Mar 9, 2024 12:43:27 PM

1040 tax exempt interest doesn't check with data?

Turbo taxes 1040 line 2a tax-esempt value does not match data.  Off by exactly $76  Is there an issue, or what am I missing?

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1 Best answer
Level 15
Mar 9, 2024 1:07:27 PM

High or low?

 

IF High, then the $$ come from both 1099-INT (box 8  ) and 1099-DIV (box 12) forms...occasionally forms K-1 too.

_______

IF low (#1), then any $$ in box 13 of any 1099-INT will reduce the amount that ends up on line 2a of the 1040.

IF Low (#2), if you bought a specific Muni bond in 2023, that you paid some accrued interest to the seller...and you entered that during the entry of the 1099-INT...then that also subtracts from the final total .

3 Replies
Level 15
Mar 9, 2024 1:07:27 PM

High or low?

 

IF High, then the $$ come from both 1099-INT (box 8  ) and 1099-DIV (box 12) forms...occasionally forms K-1 too.

_______

IF low (#1), then any $$ in box 13 of any 1099-INT will reduce the amount that ends up on line 2a of the 1040.

IF Low (#2), if you bought a specific Muni bond in 2023, that you paid some accrued interest to the seller...and you entered that during the entry of the 1099-INT...then that also subtracts from the final total .

Level 2
Mar 9, 2024 1:27:52 PM

Thanks,  I learned something new today. 

The line 2a is lower than my calculation by $76.00.  Checking all my 1099s, I found one value in line 13 of $83.00. Now my calculation is $7.00 lower than that in 2a.  No K-1 or obvious interest to the seller.  

So I'll assume TurboTax has done the calculation correct at this time.  Thanks again for that information. 

Level 2
Mar 18, 2025 11:01:41 AM

I too struggled with understanding the tax exempt interest reported on line 2a Form 1040.  Using Steam Train's information I was able to arrive at the reported $ on line 2a by subtracting the amounts shown on line 13 of my 1099 Int (Bond Premium on Tax-exempt Bond) from the amounts shown on line 8 of my 1099 Int (Tax-Exempt Interest) Plus the amounts shown on line 12 of my 1099 DIV (Exempt Interest Dividends).