No amount in box 3 on 1099-INT for interest on US savings bonds

[Mcurry1]

I called Capital 1 and they said they don't separate interest earned on accounts from interest earned on US Savings bonds.   So all my interest is in Box 1 and the majority of it is from US savings bonds that were redeemed.   How do I enter this in Turbotax?

[baldietax]

I'm assuming you mean you redeemed physical savings bonds at a Capital One branch.  Unless you're claiming Fed tax exemption for educational use then it doesn't affect Fed taxes so one way to tackle this would be to put in the 1099-INT the way it came from Capital One to avoid any discrepancy with the IRS and then make an adjustment to your state taxes, there should be ability to input a subtraction for the redemption interest and provide explanation.  I'm not a CPA/expert so others can weigh in but just my thoughts on how to deal with it.

[Mcurry1]

So I was wrong.  When I talked to Capital One they told me they don't break them out into box 1 and 3.  Then I realized I would be getting a 1099-INT from Treasury Direct.  They were redeemed there and the proceeds were transferred to the bank.

[VolvoGirl]

@Mcurry1   Just to finish up.  So your bank 1099 INT does NOT include the bond interest in box 1?  If you will be getting a 1099 from Treasury Direct then it should not be on the bank 1099.  If I remember the Treasury Direct doesn't mail you the 1099 and you need to log into your Treasury account to download the pdf for it.  

You said the bank 1099 was a large amount because it included the bonds.  If that is the case you might have a problem.  Check again with the bank.  

[Mcurry1]

It's all good.  Apparently I had more regular interest than I thought.  And, yes, I did get the bond 1099 off of the treasury direct website.