Depends. But probably two 1099-INT forms
1) For the i-bond you cashed, you should create a 1099-INT form the US Treasury, and put the interest in box 3.
2) For the Treasury Bills, you "probably" hold those at a brokerage. IF so, you need to get the 1099-INT form that brokerage and either import it, or enter it manually. It may have other $$ in other boxes that also need to be filled in. Those held there can be summed together and not entered individually.
These are all from treasury direct ONLY, treasury direct creates a form only for rows
Form 1099-INT Interest Income(OMB No. 1545-0112)
Date TransactionConfirm # Description of Security Interest On U.S.Savings BondsAnd Treas.Obligations(Ref. Box 3), Federal Income TaxWithheld(Ref. Box 4)
it includes Tbond and I Saving
so i question was , do i have to create separate record for each row for T Bond and I Saving Bond
For a Treasury Direct account, you only need the total as a single 1099-INT.
I have had an account there too for many years. I have always used just the total at the bottom of the list of entries, and entered as one 1099-INT in the software.
How do I avoid state taxing this amount? If I place total amount as 1099 INT in Federal tax. State Tax increases as well. But Interest from Treasure Bill should not owe state tax.
Thank you
How did you figure it out? For those of us that are in the same position.. I may figure it out too but I'll come back and give an answer cause this comes up in Google Search for people in the same boat.
I figured out I need to manually enter it and enter it in Box 3 of the 1099. Watching Fed and State this added up!
When you put 1099 int make sure you check Box #. There is option for you to pick 1.2.3....etc. Box 3 is specifically for Treasure stuff... And it is state tax free!!
Sweet, Figured it out before I seen this but **bleep** thanks for the fast response! If I didn't you'd been a hero.
Thanks!
I was just given incorrect information on how to report US Treasury I-Bond interest income on my Federal tax return. I cashed in a $10,000 I-Bond on 9/28/23 and received the principal amount of $10,000 plus interest income of $852. The Turbotax Helpdesk said to report the $852 interest income in Box 3 and not Box 1. When doing so, the reported interest of $0.00 on the summary interest page, not $852, thus under-reporting m interest income. So, I entered the $852 in Box 1 only, and that pulled the correct amount of $852 interest into the summary page. The Helpdesk even checked with her Supervisor and continued to give me incorrect advise.
Yep...the summary interest page does not show all the $$ for all the boxes...until you drill down in a ways further. But when it's appropriate, when $$ are put in box 3, they are all handled properly on the final Federal and state tax forms.
(Meaning Treasury & Savings bond interest goes in Box 3)
I'm sure it's a continual challenge for the software user-interface people to determine what they need to show on the summary screens.
@jgsfinancl No issues when entering interest in box 3 of the Form 1099-INT. Shows on the Form 1040 Line 2b as taxable interest.
if you filled box 1 and 3 and efiled and it was accepted you double reported the US interest. Box 3 was the only box to reprt US interest, Look at page I of 1040 line 2b that should show only 852 + any other interest
if it shows 1704 + your other interest you double reported. If your return was accepted you'll need to file an amended return to get back the overpaid taxes.
So if we have a 1099-INT from Department of the Treasury (for things like T Bills), we're ONLY entering the interest in Box 3 on TurboTax and box 1 is $0 (or blank)?
Yeah but checking box 1 means you can be taxed by your state. Box 3 is right but there seems to be a bug in TurboTax this year only. When I use box 3 it keeps giving an error and wanting to delete the 1099-INT. They told me to get one of their experts, so I have an appointment (though it could be due to another issue).
Which version of TT are you using? It's giving me trouble in Deluxe.
This is a huge disappointment to me, a first time user of TurboTax. It should not be this difficult to do this calculation and entry. Even the Chat human help had a hard time ansering my question and just linked me to this user chat. Not good.
Thanks so much. It should not be this difficult for the "help" to answer this question. Even in review, a not savvy filer could inadvertently miss this and that would be a trigger/error in reporting. The program should automatically ask the question re: Bonds.
If you got this resolved could you post? This is holding up my filing!
@marychris0104 wrote:
If you got this resolved could you post? This is holding up my filing!
On the screen for entering the 1099-INT just click on the box labeled My form has info in other boxes and enter the interest in box 3.
To report interest income received -
Click on Federal Taxes (Personal using Home & Business)
Click on Wages and Income (Personal Income using Home & Business)
Click on I'll choose what I work on
Investments and Savings
On Interest on 1099-INT, click on the start or update button
Or enter interest income in the Search box locate in the upper right of the program screen. Click on Jump to interest income
On the screen Did you have investment income in 2023? Click on Yes
On the screen Let's import your tax info, click on Enter a different way
On the screen OK, let's start with one investment type, click on Interest and Continue
On the screen How would you like to upload your 1099-INT? Click on Type it in myself