TurboTax and accrued interest (or other interest adjustments)

Posted by MyVeryOwnSelf on March 2, 2007, 2:49 pm

Please log in for more thread options

Be aware of a calculation issue in TurboTax.

It affects people who have:

- an interest adjustment (for example, accrued interest) for a
form 1099-INT, and

- have more than one interest category (for example, taxable,
tax-exempt, U.S. obligations).

For details see http://forums.turbotax.com/ and search for "accrued
interest" or go directly to

http://forums.turbotax.com/intuit/board/message?board.id=investments06
&message.id=460

The adjustments TurboTax puts in Schedule B may surprise you. It sure
surprised me. The Schedule B interest adjustment figures are worth
checking.

A work-around of sorts is described in the forum. It involves creating
multiple 1099-INT worksheets for each 1099-INT form; maybe as many as nine
each, though I'm not sure.

Only by accident did I noticed the discrepancy. Otherwise, I would've
reported bogus numbers on Form 1040.