My brokerage statement says I have $13.20 of MOID. It is not on a 1099-INT or a
1099-OID; just a note at the end of the statement. There is a 1099-INT for the same bond of $252.50 of tax free interest.So where does this $13.20 get entered, if anywhere? I could enter it as though I got a 1099-OID, but there does not seem to be any way to make it tax free; or maybe its not tax free?
Thanks.
a 1099-OID; just a note at the end of the statement.
way to make it tax free; or maybe its not tax free?
You treat it the same as your other tax-exempt income. Add the two numbers together and report the total as tax-exempt interest on your federal return.
Check with your own state on how they may tax federal tax-free muni bond interest.
If I do that my return won't agree with the 1099-INT. Is that a problem? Perhaps I should do it as a separate entry? It is at the end and not reported to the IRS. Since it is tax free, it does not change anything. Perhaps it is best to ignore it?
Perhaps I should do it as a separate entry?
not change anything. Perhaps it is best to ignore it?
Just follow my instructions. Millions of dollars of tax-exempt interest are reported on broker statements every year without a 1099-int. There is no mismatch on income when you report a number larger than the amounts on 1099s.
Perhaps I should do it as a separate entry?
not change anything. Perhaps it is best to ignore it?
Will do, thanks.
Sometimes increasing your income may decrease your tax, as when you stop qualifying for the EITC, tuition and fees deduction.
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