Question

1099-int

Forum|Forum|4 years ago
February 18, 2022
1 reply
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I received my 2021 Form 1099 Composite. On the Form 1099-int box 8, has $0 and box 13 has $54.86. When Turbo Tax runs a Smart check, Smart check flags Box 13 as an exception condition and says I must reduce the bond premium amount to the same amount as reported in box 3. I'm confused as to what to do. Do I ignore the exception or change the amount on the 1099-int worksheet box 13 to $0 even though that is not what the 1099-int has recorded?

T

ThomasM125

You should change the amount in box 13 to $0.

It says on the instructions to line 13 of form 1099-INT, that if the amount in box 13 is greater than the amount of interest paid on tax-exempt covered securities (amount in box 3), then the excess is a nondeductible loss. So, there is no tax consequence to reporting the amount in box 13 in your case, so you can change the amount to $0.

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