Accrued bond interest

[tryo123]

I purchased some bonds on the secondary market in 2023. I have earned $50 in interest and $720 in accrued interest.
I assume the $720 should be deducted from my taxable income, so I tried entering it in turbotax while filling my 1099-int. During the turbotax review, I see this warning:

Adjustments [$720] reported on this form 1099-int are greater than the total interest income [$50]. Review and make adjustments if necessary.

In the form turbotax shows me, its correctly identified the accrued interest I entered as accrued interest. Box A for accrued interest is checked.

Did I enter something wrong, or should I ignore the warning?

[Mike9241 · Accepted solution]

the accrued interest deduction on the bond is limited to the interest income received on the bond in 2023. the rest would offset the interest received in 2024.

[tryo123]

Thanks! Does this mean that for 2023, i should claim the amount equal to my interest from the bonds (50$), and jot down the remainder? Then in 2024, i can use the rest?

ie 720-50=670 is what will be left for next year?

[RobertB4444]

That is exactly what that means.

@tryo123