|
Posted by John Beurket on February 8, 2007, 11:51 pm
Please log in for more thread options
I received a 1099-INT form which had both taxable and Tax
Exempt Interest reported. Tax Exempt bonds were purchased
that year with accrued interest paid. When I entered the
accrued interest into TaxCut I that only a portion
equivalent to the portion of tax exempt to total interest is
deducted from the tax exempt interest reported on the 1099
form. This results in a larger tax exempt interest being
deducted from the total interest, giving a taxable interest
which is less than it should be.
I have reported the situation to TaxCut support and have not
been able to get the problem resolved. I also entered
similar information into Turbo Tax online and found the same
problem.
I know that I can get the correct taxable interest by using
the Override option by placing the Taxable and Tax Exempt
interest on separate lines or by entering the Accrued
Interest on the line for another 1099 which is wholly Tax
Exempt. Override may prevent me from being able to file
electronically and the other two options may invite scrutiny
from the IRS.
Any advice would be appreciated.
John Beurket
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap