oid bond premium adjustment - corretced question

[maxwell99]

OID question/problem:

TurboTax says:
Form 1099-OID Box 10 bond premium.
The bond premium adjustment of $39.27 reported on this form 1099-OID
is greater than the interest income reported in Box 2 on this 1099-OID of 0.00.
You must reduce the bond premium amount reported on this 1099-OID to the amount
of interest income and report any excess on Schedule A
(subject to any required limitations).

This interest/premium is for a muni bond that is Federal and State tax exempt.
If I put it on Schedule A for $39.27 does this mean tax free income has becme taxable?

OID
Boxes 1-5 are blank
Box 8 & 9 are blank
Every box is blank except these 3:
Box 6 $0.68
Box 10 $39.27
Box 11 $0.68

[norse2]

I have the same question.

Help?