Greetings,
Charles Schwab reported the 2024 maturity of a Treasury security on Form 1099-B. For this question, let's say I purchased it at $900 and it matured at $1,000. I uploaded the 1099 electronically on TurboTax. TurboTax reflects the proceeds and cost basis on line 1b of Schedule D and the $100 difference they reported as a negative $100 on that same line in column g (so no gain for this item flows from Schedule D to the 1040). TurboTax then placed the $100 on Schedule B as "US Treasury Interest *Matured* Accrued Market Discount" and from there it flows up to the 1040 as taxable interest income. On the California return TurboTax did not include the $100 on the CA Interest and Dividend Adjustment Worksheet, so the amount is being taxed by CA. I am looking for a way to fix this if one exists. Any help with a fix or informing me that the only solution is an override. I already have an amount on the CA Int-Div Adj WS on Line 1 Col B (I think this is the actual interest I received on the bond. Many thanks for any suggestions.
