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February 27, 2021
Question

1099-INT form shows $204.44 in accrued interest paid, but TurboTax Schedule B shows $176.37 credit for this. Why the difference?

  • February 27, 2021
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1 reply

ReneeM7122
March 3, 2021

If the accrued interest paid was on a bond or a similar instrument that accrues interest since the time it was purchased, then you can reduce your interest income by the accrued interest at your purchase date.  However the software takes the full amount of the interest and then the Accrued interest paid as an adjustment to reduce that interest.