Accrued Interest on 1099-B

Forum|Forum|1 year ago
January 25, 2025
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I have accrued interest paid on several short-term treasuries that have matured. For this reason, the brokerage firm reported them on FORM 1099-B. How do I enter the accrued interest paid on these using this form? I noticed that although I have filled out FORM 1099-B, the amount shows up under the Interest Income 1099-INT. section. Thank you in advance for your assistance.

TurboTax Business Windows

DianeW777

My advice is to report the accrued interest as interest income (Form 1099-INT) instead of 1099-B. There you can make your adjustment for the portion of accrued interest you paid at purchase. If you are reporting Interest income on a bond that had accrued interest at the time you purchased, then you would reduce your interest income by the accrued interest at your purchase date. Enter the full amount of the interest, and then enter the Accrued Interest paid as an adjustment to reduce it.

Open your TurboTax return:

Search (upper right) > Type 1099int > Click on the Jump to... link
Enter your interest income > Continue > Select 'I need to adjust the interest reported on my form'
Enter the adjustment amount (accrued interest at purchase) > Select 'My accrued interest is included in this 1099-INT'
This will accomplish the correct taxable income for your return.

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mstondreaux

I followed the steps for entering the accrued interest but the interest is not being reduced on Schedule B of the tax return.

lordguido

The amount I entered on 1099 int for 'adjustment to interest under A accrued interest is being reduced by something. for example I post a $-1000 and it shows up on schedule B as $-300. The deduction is not a consistent number. I can't figure out what is causing the reduction. On past returns, the number entered was the same on Schedule B. Any thoughts?