1099-INT taxable accrued interest paid

You use the Interview to EDIT that 1099-INT, then on a page after the 1099-INT, there is a box to check to:

"I need to adjust the interest reported on my form"

Then the next page you put in the $50 and indicate it is for accrued interest.
____________________________________________

BUT.... a point to make about the software and getting it fully correct.

IF your 1099-INT has a mix of box 1,3 & 8 $$ on it...then entering any accrued interest (paid out when you purchased a bond)....that accrued interest will be divided proportionally (improperly) among the box 1,3,&8 $$ amounts.

The fix is to split out the type of bond interest...for which you are reporting the accrued interest paid...into it's own 1099-INT.

So if the accrued interest was paid on a Treasury bond (or bonds) then you need to move the box 3 &12 $$ into a separate 1099-INT before you indicate that accrued interest on the follow-up page for that separate 1099-INT form.

Same would go for boxes 1&11 together (If appropriate) or box 8 &13...depending on what bond types you purchased.

Thus box 1, 11, and any accrued interest for corporate bonds are on reported one 1099-INT

.....box 3, 12, and any accrued interest you paid for US Govt bonds on a second 1099-INT

....box 8, 13 , and any accrued interest you paid on any MUNI bonds you bought on a third 1099-INT.

Of course, if you only bought (say) some Muni's during 2024, then you'd only need to take out the 8 & 13 $$ into their own 1099-INT to report the accrued interest you paid for those.

______

Final Note:  For bonds purchased in the last half of the year...if the bond you bought did not issue interest to you before the end of 2023, then you cannot report that accrued interest payment until 2024 taxes (i.e. after you actually get an interest payment from that bond).  I use a spreadsheet with notes on it to keep track. 

I even bought a Muni bond already in Feb of 2024, that issues its first interest in 2025  (then semiannually thereafter)....so the small amount of accrued interest I paid, will need to wait until I file 2025 taxes in early 2026.