Interest income

[briandsmith]

TT has input an item under interest income that I do not recognize! By that I mean it showed up in Schedule B after I had imported my data, and I cannot see it in the paperwork I have received. TT has a "data source" feature, and it lists about 5 potential tables to check. I do not have any of them specifically.

The item does not show up in the list of forms, as do the other Schedule B items. A closer look as I write this shows it to be a UST Note. There is a long list of numbers and the words "Accrued Market Discount". 

I guess that gives me a clue for further searching but does anyone have a suggestion? Interest on US Savings bonds is usually printed on the relevant 1099-INT.

[JamesG1 · Accepted solution]

Accrued market discount may be found in box 1f of an IRS form 1099-B.

Review your IRS form 1099-B entries.  To view box 1f, you may have to click the box I have other boxes on my 1099-B to enter.

The explanation note in TurboTax states:

Usually, if accrued market discount is reported on your Form 1099-B, you should enter it here and we will include this amount as accrued interest on your Schedule B.

[briandsmith]

Thank you for a prompt reply.

I have quickly reviewed my 1090- B's and do not see anything. I'll go through later to be sure.

I have not tried clicking on the box 1f. I'll have to log into the bankers to do that More later, probably tomorrow!

[briandsmith]

I have further reviewed my 1099-B forms - there is nothing in box 1f on them. You mention checking a box "I may have more info etc." Since this is imported data, it is the financial organization that would do that and I am unsure how I would see that?
Is it possible to delete that item from schedule B and if so, how?

[RobertB4444]

It is possible to delete the item from schedule B but an accrued market discount is an actual thing.  It usually modifies interest reported on a 1099-INT.  It should be reported.  

You said that you had imported your brokerage forms.  A 1099-COMB usually includes the 1099-B as well as a 1099-INT or 1099-DIV or all three.  That accrued market discount should be an adjustment to the interest you received on your 1099-B and it should appear on your schedule B.  Deleting it is a bad idea.

[briandsmith]

Thanks for the advice, I wasn't trying to be dishonest, I was thinking of experimenting to see what TT would do with the deletion, through the review process, still trying to find where it is reported. I couldn't see how to delete it from the form, however.

I have since found a couple of 1099-MISC forms TT has found, that do not appear in the paperwork I received. I am working with a new institution; I obviously have more work to do before I can file!

[briandsmith]

I need to say sorry to anyone following this thread! The item was reported on 1099-B AND was included in Forms! What threw me was that it showed up in Interest (plus I have extremely bad eyesight)! For the record it was on 1099-B as line 1f accrued market disc (D). TT put it into the Capital Asset Sales Worksheet, into the Brokerage Statement. Code D - Short term sales with cost basis reported to IRS. It was listed in Forms as a Capital Asset sale, not as an interest. It also appears on Form 8949 "Sales and other dispositions of Capital Assets". 

So - good old TT saved my bacon again! My thanks to the Community as well.