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I have accrued interest paid on purchases of tax exempt munis. Can I reduce my interest reported

Forum|Forum|3 years ago
March 30, 2023
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It is in Supplemental information not reported to the IRS. Turbotax ignored it although I uploaded the full 1099.

TurboTax Premier Online

Best answer by GeorgeM777

No, don't reduce the interest reported on your 1099-B. Rather, enter it as is and then make a negative corresponding entry that represents the interest you paid the other bond holder. To enter a corresponding negative amount, in TurboTax online, from the Wages & Income section scroll down to Less Common Income, then select Miscellaneous Income and then select Other Reportable Income. Enter a description for the adjustment (Adj for exempt interest) and then enter the adjustment as a negative figure.

If you are using TurboTax CD/download, the steps are essentially the same. Select the Personal tab, then Personal Income, and scroll down the screen to Less Common Income. Then continue as mentioned above.

G

GeorgeM777Answer

No, don't reduce the interest reported on your 1099-B. Rather, enter it as is and then make a negative corresponding entry that represents the interest you paid the other bond holder. To enter a corresponding negative amount, in TurboTax online, from the Wages & Income section scroll down to Less Common Income, then select Miscellaneous Income and then select Other Reportable Income. Enter a description for the adjustment (Adj for exempt interest) and then enter the adjustment as a negative figure.

If you are using TurboTax CD/download, the steps are essentially the same. Select the Personal tab, then Personal Income, and scroll down the screen to Less Common Income. Then continue as mentioned above.

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