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Returning Member
posted Apr 14, 2025 10:16:39 AM

Form 8814 and 1099-INT with Box 8 and Box 13

Hello, I am reporting Child's Income through Form 8814 in TurboTax. Total unearned taxable income is >$1,300.

 

I have one 1099-INT with Box 8 (Tax-exempt interest) of $1900 and Box 13 (Bond premium on tax-exempt bonds) of $800 and I am not sure how to report this.

 

What do I report as tax-exempt interest? Is it $1900 or $1100? I know it doesn't necessarily matter for my federal return, but this is taxable for me for my state return. This 1099-INT is for an out of state municipal bond. 

 

When I fill in the information for Child's Income as part of TurboTax, I do not know if I should specify the $800 as Amortizable Bond Premium. Maybe I should not, because TurboTax then calculates my tax-exempt interest as $2700 ($1900+$800). Maybe I should ignore the $800 and not enter anywhere?

 

Thank you very much!!

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2 Replies
Level 15
Apr 14, 2025 10:24:39 AM

If the child has unearned income (interest, dividends, capital gains) of $1,300 or less they do not have report that income on a tax return.

Returning Member
Apr 14, 2025 10:27:03 AM

Thank you for the reply! They have other unearned income to report so the total is greater than $1,300. I'm just not sure how to handle this tax-exempt interest. I have modified the numbers in the original post.