How to report both accrued interest paid and amort...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
popomama
Returning Member

How to report both accrued interest paid and amortized bond premium adjustments on a single 1099-INT form?

I purchased a treasury bond last year. My bank sent me an 1099-INT, on which bond premium is filled in box 12(Bond premium on Treasury obligation). I know I need to do amortized bond premium adjustments, but I also need to report the accrued interest I paid when I purchased the bond.

Questions is how I report both accrued interest paid and amortized bond premium adjustments pertaining to a single 1099-INT form? When I select 'the Interest item requires an adjustment' on 1099-INT,it doesn't allow me to select both (1)Bought/Sold bond between interest payments and (2) The premium on this bond can be amortized. It only allows me to select one of the two.

4 Replies
Anonymous
Not applicable

How to report both accrued interest paid and amortized bond premium adjustments on a single 1099-INT form?

box 12 for amort

adjustments to interest box a - check enter accrued interest as positive number

on the schedule B on separate lines  you should see:

the gross interest

ABP adjustment as a negative 

accrued interest as anegative

popomama
Returning Member

How to report both accrued interest paid and amortized bond premium adjustments on a single 1099-INT form?

hi hackitoff,

 

I think we can't just leave box 12 itself with the number. I have to find a way to do the amortized bond premium adjustments. If I just have the # in box 12, but doesn't do adjustment, then APB on schedule B will be 0.

 

This is why I need to find a way to adjust both amortized bond premium and accrued interest  .

 

popomama
Returning Member

How to report both accrued interest paid and amortized bond premium adjustments on a single 1099-INT form?

Hi TurboTax staff, would you help me out?  Thanks a lot.

SteamTrain
Level 15

How to report both accrued interest paid and amortized bond premium adjustments on a single 1099-INT form?

@popomama 

 

Did you figure it out?

 

Box 12 should be the exact amortized premium for the time you held the bond in that year...so it doesn't need adjusting any further.  Then the Accrued interest  is added separately in the followup page.

_________________________

Note about Software Complications:  

 

 The possible complication, though it is a software complication, is that IF your 1099-INT from that provider reports interest for several categories..like in any combination of boxes 1, 3, and 8 ...all in the same 1099-INT form, you should remove the interest for the bond type you just purchased, and put it on a separate 1099-INT reporting just  the $$ associated with that particular bond type and then put the accrued interest declaration on that separate 1099-INT.  Example: if the accrued interest was for a treasury bond you bought, and the financial institution put $$ in boxes 1, 3, and 8 for other holdings you have...for a treasury bond, you would remove all of the box 3 $$ (and box 12 $$ too if any shows), and create a separate 1099-INT from that provider showing only boxes 3 (and 12) and declaring the accrued interest paid for the bond on that 1099-INT form  (a followup page to the main form). 

 

IF you don't do that,the software will divide up the accrued interest proportionally among boxes 1, 3, and 8.  Yeah, would be nice someday if TTX would allow separate entries for accrued interest...targeted to the proper box.

 

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Dynamic AdsDynamic Ads
v
Privacy Settings