Where do i enter the accrued interest paid on bonds? last year there was an adjustments section and i can't find it this year

[Herb17]

The accrued interest adjustment amount that is showing up on Schedule B and on the 1040 is much less than the amount that I put in.  Any ideas why?

[SteamTrain]

@Herb17 

Did you read all of the above posts?

(Other than entering the wrong $$ in the first place)

That only happens if there is a mix of box 1,3,&8 $$ on that 1099-INT.

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1)  If you bought a corporate bond in 2022, and paid accrued interest to the seller, remove all of the box 1, & 11 $$ from the combined 1099-INT and place it on a separate 1099-INT and report the accrued interest on that new 1099-INT.

2)  If you bought a Treasury bond in 2022, and paid accrued interest to the seller, remove all of the box 2, & 12 $$ from the combined 1099-INT and place it on a separate 1099-INT and report the accrued interest on that new 1099-INT.

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And in the future if you buy a MUNI bond

3)  If you buy a Muni bond, and paid accrued interest to the seller, remove all of the box 1, 8 & 9 $$ from the combined 1099-INT and place it on a separate 1099-INT and report the accrued interest on that new 1099-INT.  The accrued interest will be subtracted from the Exempt interest line of the form 1040, BUT those $$ won't show anywhere as a separate entry...except in the new 1099-INT worksheet.

[TMCJ]

When I enter the adjustment amount for accrued interest and check the box "My accrued interest is included in this Form 1099-INT' it does not reduce my box 3 amount by the adjustment

[SteamTrain]

@TMCJ 

Working properly for me. Just tested it.

Did you look at the actual number on line 2b of your form 1040 before, then after the accrued interest entry?

 Make sure your box 3$$  (& box 12 $$ if any), are on their own 1099-INT.  Do not do this is box 1 or box 8 $$ are on the same 1099-INT.  If you have such a mixed 1099-INT, make sure create a separate 1099-INT for just the box 3 (&box 12) before you enter the accrued interest on that separate 1099-INT.

[rlaporte222]

Could the instructions be updated to follow the 2023 turbo tax year software?  There is no "show more" (first bullet) option for the 2023 software; there is a "more info", but this is general information, nothing populates to complete when the "more info" is opened.   I would like to report annual accrued iBond interest only for 2023, no 1099 was issued, therefore the turbo tax form instructions do not reconcile to a situation when a form is not received.  Turbo tax provides "Did you receive any interest or dividend income in 2023".    I did not RECEIVE the interest, I only want to report it.  There are 14 box/section options to consider completing, but they are all related to a 1099 form which I do not have.   Does turbo tax have specific instructions for reporting the ACCRUED 2023 tax year iBond interest?   Thanks.  

[Brad999]

I don't understand how you can have accrued interest on i bonds because you can only buy them directly from the US Treasury at face value.  And tax on interest earned is deferred until they are redeemed.

[SteamTrain]

@Brad999 

I think they are talking about declaring the yearly earned interest in savings bonds (the amount that has accrued, but not actually paid out).  The IRS allows you to do that instead of at maturity.....even though it's not required.

I never recommend reporting savings bond interest every year, and just do it at maturity....the record keeping to reporting every year is an absolute mess, and just complicates your tax life.

  But that's up to every individual to decide.

[dottore]

I report interest every year because my current income is so low I don't pay any income tax and because I expect my current income to be  high in a few years. So it's advantageous for me to report each year. But I agree that it is a pain in the neck to keep track of it and this is a situation that applies to only a small percentage of I-bond holders.

[SteamTrain]

True..

Anyhow , if you are going to report it every year, you enter a 1099-INT in the software...As-IF you did receive a 1099-INT.

As-If From: The US Treasury

and you put the calculated yearly interest (form all the savings bonds you hold) into box 3.

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Other info here:

Tax information for EE and I bonds — TreasuryDirect