turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Phen
Level 2

How to make adjuestment to interest income for accrued interest paid

1. By the definition for the "accrued interest paid," isn't it true that one can't have an accrued interest paid reported, if he/she didn't receive any interest on a bond (let's call it Bond A) in a given tax year? However, I have seen one Form 1099 from a brokerage that reported such a thing. Can you explain under what circumstance this will happen?

2. I will use a made up case to illustrate my question. Supposing a brokerage firm reports the following information in a 1099-INT

Line 1 Interest Income: $20,000 (Note: all are from two types of security: Bank and taxable bond.)

Line 3 Interest on US Treasury security: $10,000

Line 8 Tax-exempt interest: $1,000

This brokerage also reports a $800 on the line of other accrued interest paid in the table of "Distributions and Charges." All of this amount are from either the taxable bonds or Treasury securities.

My question for this case is:

Do I need to create separate 1099-INTs for each type of security such as taxable bond, tax-exempt bond, bank, and treasury securities? What happens if I don't do it and just enter the $800 as the adjustment to this single 1099-INT that is imported directly from the brokerage?

3. How may I create the separate 1099-INTs for each type of security when they are reported by the same firm?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies