Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 4, 2025 2:32:43 PM

i paid iaccrued interest on cd but cannot figure how to deduct it from reported int on 1099 in my turbo tax account

when i check do any of these uncommon situations apply, turbotax does not give me the option to adjust the taxable amount

0 1 1201
1 Replies
Expert Alumni
Mar 5, 2025 1:45:08 PM

The accrued interest can be used to reduce the current interest income on your 1099-INT. If you are reporting Interest income on a bond that had accrued interest at the time you purchased, then you would reduce your interest income by the accrued interest at your purchase date. Enter the full amount of the interest, and then enter the Accrued Interest paid as an adjustment to reduce it. 

 

Open your TurboTax return:

  1. Search (upper right) > Type 1099int > Click on the Jump to... link
  2. Enter your interest income > Continue > Select 'I need to adjust the interest reported on my form'
  3. Enter the adjustment amount (accrued interest at purchase) > Select 'My accrued interest is included in this 1099-INT'
  4. This will accomplish the correct taxable income for your return.