1099-INT accrued interest

[jfish1]

Turbo Tax is telling me to make new 1099-INT for each type of interest to enter in accrued interest I paid.  See text below from the page.  How do I make this additional 1099-INTs?  Do I then have to correct my actual 1099-INT to be something different than what was reported?  Can I just enter in a single number for all of the accrued interest?  I don't understand what this isn't handled on the 1099-INT form itself in the appropriate boxes rather than being in the "not reported" section of the 1099 combined.

Turbo Tax Text:

"The adjustment amount entered here will be allocated among the different types of interest reported on this 1099-INT. To apply this adjustment to a specific type of interest, create a separate 1099-INT for each type of interest income, and then enter the adjustment amount applicable to only that type of interest."

[SteamTrain]

@jfish1 

Yes , it would be better if TTX software handled the situation better...but it doesn't...at least not yet.

So...yes, you just manually create a separate 1099-INT as-if from that same payer/Brokerage.

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What needs to be put in the boxes for the newly created 1099-INT forms, depends on what types of bonds you bought.

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Gory details:

So if the accrued interest was paid on a Treasury bond (or bonds) then you need to move the box 3 &12 $$ into a separate 1099-INT before you indicate that accrued interest on the follow-up page for that separate 1099-INT form.

Same would go for boxes 1&11 together (If appropriate) or box 8 &13...depending on what bond types you purchased.

Thus box 1, 11, and any accrued interest for corporate bonds are on reported one 1099-INT

.....box 3, 12, and any accrued interest you paid for US Govt bonds on a second 1099-INT

....box 8, 13 , and any accrued interest you paid on any MUNI bonds you bought on a third 1099-INT.

Of course, if you only bought (say) some Muni's during 2024, then you'd only need to take out the 8 & 13 $$ into their own 1099-INT to report the accrued interest you paid for those.

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Final Note:  For bonds purchased in the last half of the year...if the bond you bought did not issue interest to you before the end of 2023, then you cannot report that accrued interest payment until 2024 taxes (i.e. after you actually get an interest payment from that bond).  I use a spreadsheet with notes on it to keep track. 

I even bought a Muni bond already in Feb of 2024, that issues its first interest in 2025  (then semiannually thereafter)....so the small amount of accrued interest I paid, will need to wait until I file 2025 taxes in early 2026.