The tax exempt interest in box 12 does not equal the interest shown in box 3. I have 0 interest shown in box 3 but i do have $300 in interst in box1. What do I do ?

[LeticiaF1]

When you pay more for a bond than its face value, the excess is called a premium.  Since you have no interest on US Savings Bonds and Treasury obligations, then reduce the amount you entered in Box 12 to zero.

You can claim the $300 in your Schedule A (if you are itemizing)  as bond premium paid.  This amount won't make a difference if you aren't itemizing your expenses.  If you are itemizing to enter this premium:

1. Open your return
2. Go to the Deductions and credits on the left menu
3. Select Other deductions and credits
4. Continue the questions and answer yes to the question of other expenses that include bond premiums

See the images below for your reference: