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Level 1
February 10, 2026
Question

Accrued interest paid

  • February 10, 2026
  • 2 replies
  • 91 views

My 1099-INT has a line that says, "Other Accrued Interest Paid," which appears to apply to non-muni interest.  Where do I enter the appropriate dollar figure in TurboTax?

    2 replies

    Alumni - Intuit
    February 11, 2026

    It depends. When you buy bonds between interest payment dates and pay accrued interest to the seller, this interest is taxable to the seller and reduces your taxable interest because you used funds to purchase that were already taxed. This reduces your taxable interest.

    1. First select to enter the interest yourself.  When you reach the screen 'Do any of these uncommon situations apply?
    2. Select I need to adjust the interest reported on my form.
    3. Continue > Enter the accrued interest as a positive amount
    4. Select My accrued interest is included in this 1099-INT
    5. Continue to finish your entry

    Once completed you can view your 1040 form, line 2b for the taxable interest amount.

    From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

    1. Select Tax Tools
    2. On the drop-down select Tools
    3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
    4. On the left sidebar, select Preview my 1040 

    For TurboTax Desktop, change to 'Forms' and review the forms

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    baldietax
    Level 12
    February 11, 2026

    note if you have multiple types of income on the same 1099-INT - Box 1,3,8 then you need to input the box which has the accrued paid as a separate 1099.  Turbotax doesn't know how to allocate adjustments and will apply it across all the boxes unless you split it up.

     

    also if the next interest coupon after a 2025 purchase falls in 2026 then the accrued would be applied to your 2026 taxes to line up with the income, in this case you have to track and carry it over.  depending your brokerage they may just give you a report of accrued you paid in 2025 but no guidance whether they applied to a 2025 coupon or not.