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Level 1
posted Mar 16, 2025 2:13:33 PM

Turbotax report lower Accrued interest number on Schedule B than I reported.

0 2 964
2 Replies
Expert Alumni
Mar 17, 2025 4:46:55 PM

Verify your entries. The adjustments box is opposite what you think. A positive amount subtracts.

The seller of the bond reports the accrued interest while the purchaser will deduct the accrued interest from the 1099-INT.

You can enter the accrued interest adjustment in the 1099-INT section of TurboTax. You will see the adjustment on Sch B.

 

Follow these steps to make an adjustment:

  1. Select Federal Taxes
  2. Select Wages & Income 
  3. Edit your 1099-INT information
  4. Select Continue
  5. Select I need to adjust the taxable amount, select Continue
  6. Enter the accrued interest paid in the Adjustment box - enter a positive amount to subtract the interest
  7. Select the Reason for Adjustment as My accrued interest is included in this Form 1099-INT -my accrued interest is included.

Level 1
Mar 17, 2025 7:14:12 PM

Thanks, amyc

 

Yesterday I also posted a help request with the subject as " Schedule B Accrued interest not matching 1099 INT accrued interest data"  baldietax told me to split the 1099 INT into 2 1099 files.  One with taxable interest and the other one with tax free interest.  Put the Accrued amount with the first one.   I followed that and the error went away.

 

I am very happy and appreciate your response too.

 

gnest02