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jbs6
New Member

accrued interest paid on purchase

I paid accreditation interest to the seller of bonds purchase. In answering the question do you need to make adjustments to income reported on Form 1099 interest, I put the amount as a positive figure, as instructed and select the dropdown accrued interest. Then on Schedule b, the amount is added instead of subtracted. I cannot manually overwrite to show this figure as a negative amount.

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1 Reply
DaveF1006
Employee Tax Expert

accrued interest paid on purchase

It depends. I entered a 1099 INT entry that reported $2000 of income. I then made a $1,000 adjustment to show this with a positive number.  Here are the results from my Schedule B. 

 

After making this entry, $1000 is appearing correctly in Box 2B of my 1040. Check all these entries to ensure they appear correctly. 

 

 

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