1099-OID Tax Exempt

Forum|Forum|4 years ago
February 22, 2022
1 reply
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I have a bond premium on Line 10 but zeros on line 1, 3, 5,8. Also have small amounts on 6 and 11. I can't seem to resolve how to correct this problem when Smart Check Occurs. It doesn't like that I have zero amounts in the other lines. This is a tax exempt bond and is long term covered (Box "D") on the 1099-B. I was not the original owner of the bond.

Best answer by JulieS

I entered this information in TurboTax and I got the following message, "Box 10 bond premium. The bond premium adjustment of $100 is greater that the interest income in Box 2 of this 1099-OID. You must reduce the bond premium amount to no more than the amount in Box 2, and report any excess on Schedule A subject to limitations."

This means that if Box 2 is $0, Box 10 must also be $0. You can deduct the amount in Box 10 on Schedule A:

Click on Federal Taxes, then Deductions and Credits.
Scroll down to Other Deductions and Credits, expand the section.
Click Start to the right of Other Deductible Expenses.
Answer the next two questions No.
Answer Yes to Did you have any of these other expenses?
Enter the amount next to Amortizable bond premiums.

GeorgeM777

If any of your boxes on your relevant form have zeros or are blank, leave the corresponding entries in TurboTax blank. In other words, do not enter zeros in TurboTax to reflect that a box entry has no value. Sometimes entering a zero may interfere with the TurboTax calculations.

@hph1

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hph1Author

That's not the problem. In fact it keeps telling me I need to adjust line 1 even though I only entered lines with data. Please go back and read the original post.