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

[AmyC]

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.

[gnest02]

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