Question

Why did TurboTax add a 1099-B item to my interest income?

Forum|Forum|3 years ago
February 21, 2023
2 replies
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I inputted all my 1099-INTs, but then TurboTax doubled my taxable interest income by adding the following: “US Treasur Nt due 4/15/23 accrued market discount,” which appeared on my 1099-B. On IRS form 8949, TurboTax listed that item’s “amount of adjustment” with the code letter D. Thoroughly confused, as I thought all interest income was reported to me on 1099-INTs.

Any ideas on this? Thank you.

D

DavidD66

You should adjust the cost basis for the “US Treasur Nt due 4/15/23 accrued market discount” by the amount of interest reported for that note on Form 1099-INT.

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M

mikxe6Author

In other words, TurboTax has figured this correctly, and I should leave the added interest income where they’ve put it?

G

GeorgeM777

Yes. There is no double taxation. However, if you were to sell the bond prior to its maturity, you may have to adjust any gain by the amount of the accrued market discount. Any such adjustment is made on Form 8949, Sales and Other Dispositions of Capital Assets, columns f and g.

@mikxe6

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