how to enter treasury t bills and i bond 1099 info?

[Mike19741]

Is there anything in box 1 for you?

I don’t have anything 

[Billand]

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).

[Billand]

Which version of TT are you using? It's giving me trouble in Deluxe.

[marychris0104]

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.

[marychris0104]

Thanks to all who answered.

[marychris0104]

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. 

[marychris0104]

If you got this resolved could you post? This is holding up my filing! 

[DoninGA]

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@marychris0104 wrote:

If you got this resolved could you post? This is holding up my filing! 

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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

[taoslvr]

For entering interest income on I bonds, TurboTax will not let you name Payer as "US Treasury" or anything similar, therefore I can't enter this data.

[MarilynG1]

Are you entering a 1099-INT in your Federal return?  Or are you in your State return when receiving the error?  If so, which State?

I just entered one in TurboTax Desktop in my Federal return and had no issue entering US Treasury as the payer.  

If you can give more details, we'll try to help.

Here's how to Contact TurboTax Support for more help.

@taoslvr 

[gmohan123]

Hi, any idea where does that interest get reported for a corporation on 1120 and then where on Schedule K it should show up so its not taxable to shareholder state tax?

[DaveF1006]

 I am assuming you are referring to a 1120 S because a form 1120 do not prepare Schedule K or issue K-1 to shareholders.  All C-corporations pay tax on the entity level.  Assuming you mean 1120 -S, then Schedule K and Schedule K-1 is applicable.

When you prepare the federal S-Corp return, and report the interest income, there are two entries made in the form.  First of all, you would report total interest in the first screen. Once this is reported, then a second screen will appear that will report interest from US obligations such as treasury bond interest. 

All interest income will be reported as an aggregate total in Box 17 Code A. In a supplemental disclosure form, you will include with the K-1, you should instruct the shareholder that part or all this amount is interest from a treasury obligation. Then instruct them to report this in their state return as a subtraction from income because this is interest that is taxable on a federal level but not taxable to the state.