Prior tax years we claimed/reported the annual accrued interest on Series-EE bonds which were not cashed-in. When they reached final maturity and were turned-in to the bank, they correctly sent us a 1099-MISC which shows the entire interest over the life of the bond. How do we reflect the adjustment to this based upon prior year's interest claims in this year's return? I'm concerned that the IRS will follow-up on this down the road unless there's a way to reflect this against this year's 1099-MISC reported by the bank. (Note: we have all prior returns that show the accrued interest that was claimed for each tax year.)
Yes, you can adjust in TurboTax - Try this:
After you enter the 1099-INT, you'll see a screen Tell us if any of these uncommon situations apply. If you click the Learn More link you will see a reference to US Savings Bonds. Click I need to adjust the taxable amount, then enter your adjustment and select This savings bond interest was previously reported.
This doesn't work in TT 2018. When I enter the adjustment, TT tells me the interest cannot be previously reported because it is regular interest.
@ rskoss
wrote:
This doesn't work in TT 2018. When I enter the adjustment, TT tells me the interest cannot be previously reported because it is regular interest.
It's been a while since your post, but I'll leave this for anyone else who stumbles onto this old thread.
Savings Bond interest is entered in Box 3 of the 1099-INT. It sounds like you entered it in Box 1 by mistake. When correctly entered in Box 3, then on a subsequent screen it should allow it to be adjusted, if necessary.
jerry12:
When you posted this thread 3 years ago, you wrote "1099-MISC", but I'll assume you meant to write 1099-INT instead. Savings Bond interest should be reported on a 1099-INT in Box 3, not Box 1. Then on a subsequent screen it should allow it to be adjusted, if necessary.