accrued market discount on treasury bond

[kdk2]

TT added accrued market discount on 5 treasury bonds on Schedule B, but not on Schedule B- INT or on the worksheet.  This increased my taxable income significantly.  The amounts are not on my 1099 or my broker statement (which gives details on each bond), and don't match to anything.  What is going on?

[baldietax]

I think you posted separately on this where you said this was coming from informational items in the 1099, in this post you're saying it's not on your 1099 anywhere.  Still not clear what you're referring to by "Schedule B-INT" if you mean the 1099-INT items under Schedule B, or "the worksheet".  AMD (Box 1f) input on 1099-B will feed thru to Schedule B under "Adjustments to Interest Income" as "Accrued Interest" and is taxable as ordinary income, but won't generate a 1099-INT worksheet in TT.

If the import is doing something incorrectly your best recourse may be to delete the imported 1099 and input it manually.

If you're able to provide a more specific example (CUSIP, details, amounts) that may help resolve this.  Which brokerage is this?

[kdk2]

Thank you for responding.  I will try to be clearer.  The 1099 from my brokerage (Robert W Baird Inc) in the section headed 2024 1099-INT reports interest income, interest on US treasury bonds and obligations, and tax exempt interest.  They also report bond premium (covered lots).

In another section not reported to the IRS they report taxable accrued interest paid.

These amounts are all transferred correctly to TurboTax Form1099-INT worksheet.

However, TurboTax Schedule B is different.  Additional interest from 5 Treasury notes are listed individually as accrued market discount.  Where did these come from?  Each of these notes is in the broker report with the interest as is reported on the 1099-INT, not these new amounts.  The amounts on the Schedule B do not match anything.

Of note, the broker report gives a summary of information not reported to the IRS.  In this part, a market discount is reported which matches the total of the mystery interest amounts.  The broker report does not list this as taxable in their 1099-INT.  The individual amounts in TurboTax schedule B are not in the broker report, so where did TurboTax get them?

[baldietax]

posted response in the other thread on the same topic

https://ttlc.intuit.com/community/taxes/discussion/re-accrued-interest-bug-2024/01/3527930#M1305137