I did read the publication 550; it was to just put the accrued interest as a
negative number under the entry for interest.
Well, that doesn't work for me on TaxCut.
The 1099INT is:
Line 1 Interest Income 275
Line 3 Interest/Treasry 1886
Line 8 Tax-Exempt Int 4490
The Accrued interest paid is:
Corporate Bonds 14
Treasury Bonds 290
Municipal Bond 502
I entered the 1099INT and then a second 1099INT with negative numbers for
all the accrued interests; which is what I read PUB550 as requiring. Well
TaxCut gives me errors saying it can't accept negative interest.
TaxCut does allow you to enter adjustments for purchases made between
interest payments, but you can only enter a single number for Accrued
interest Adjustment; when I have three different kinds of interest to adjust
So I entered 806 in accrued interest and it puts a smaller figure in accrued
interest on Schedule B; apparently it divides up the accrued interest over
the total interest and puts the taxable share on Schedule B.
Is this acceptable? It is only approximately correct, as the accrued
interest isn't necessarily in the same proportion as the interest.
If not, then what the heck do I do?
- posted 11 years ago