Interest income adjustments

[ddy720]

I'm on TT Premium, online.

I have interest income from Treasury bonds that need to be adjusted for both a) accrued interest paid and b) bond premium paid.  However, for a given 1099, TT only allows you to select one reason for the adjustment to interest income for that particular 1099. 

Can I just lump the 2 adjustments together and pick one of the descriptions or does it matter which description I use? 

If it does matter, how do I enter the 2 different adjustments and pick a separate description for each one?

[SteamTrain]

Short answer?

For US Govt bonds...you can do both:

1) You put the amortizable amount of the premium you paid for the bond(s) in box 12 of the 1099-INT

2)..... then on the follow-up page you only need indicate you have Accrued interest that you paid to the seller when you bought the bond(s)...and only enter the accrued interest there.

__________

Longer discussion:

1)  Many brokerages (if bought thru an account) would already have the amortizable premium amount in box 12 of the 1099-INT they issued.  (if from within a Treasury Direct account, I'm not sure what they show on their 1099-INT).

2)  If it was from a brokerage issued 1099-INT, that has some combination of boxes 1, 3 & 8 $$ in that 1099-INT, then you need to remove any box 3 and 12 values from that 1099-INT, and create a separate 1099-INT with only the box 3, 12 values, and the accrued interest on that separate 1099-INT.....if you don't, then the software will (improperly) apportion the accrued interest among whatever $$ values are in boxes 1, 3 & 8.