Schedule B Accrued interest not matching 1099 INT accrued interest data

gnest02 · ‎March 16, 2025

I have more than $900 input as accrued interest in form 1099 INT " Adjustments to Interest" section. But the Schedule B only show -$250. I am using Turbotax Premium PC version. My schedule B include data of multiple accounts, it is not feasible to list one item each time!

baldietax · ‎March 16, 2025

from what've seen on this there is not much you can do other than go back thru the 1099s with the accrued interest and make sure everything is input correctly and check for things such as all of the accrued was for taxable interest not muni, if you have a brokerage 1099 with both you need to split it up as you can't specify what box the accrued is for. also check that the accrued was not larger than the interest, you can only apply accrued interest if you had the coupon payment and carry over the rest (offline) til next year (e.g. you buy a bond in December with accrued interest that doesn't pay til January).

gnest02 · ‎March 16, 2025

baldietax

Thanks for your response. I follow your instruction, split the 1099 INT into the taxable and tax free files. And only put the Accrued interest with the taxable 1099 files. With that everything works like it should be. But I just don't understand why it was design that way?

You did good job. Appreciated.

gnest02

baldietax · ‎March 17, 2025

good to hear you got it resolved. Same issue applies to premium. Likewise any adjustment that applies to Treasuries in Box 3 needs to be split out as that affects state taxes differently. You also can't specify adjustments by state for munis. I usually split up my brokerage 1099s between taxable box 1, taxable box 3, non-taxable-home-state and non taxable-other-states. One of the many reasons I don't bother with importing 1099s.

I don't know why TT has these limitations if you hold individual bonds rather than funds, that said I prefer to split 1099s instead of having more worksheet tables that are harder to troubleshoot, but you have to know to do it. Here's a recent post from @SteamTrain which also describes these issues

https://ttlc.intuit.com/community/taxes/discussion/re-accrued-interest-bug-2024/01/3530581#M1306049