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Interest and dividends

Enter accrued interest

Do the following if you received a Form 1099 for interest as a purchaser of a bond with accrued interest:
  1. Go to the
    Income
     folder and select either the
    B&D
     screen or the
    Broker
     screen. Only use the
    Broker
     screen if you want to enter a consolidated 1099.
  2. Open the
    Interest income
     statement window.
  3. Create a new line item and complete the following columns:
    • FS
      : If the interest is federal-only or state-only, code it as federal or state. Leave this field blank if you need to report the interest on both federal and state levels.
    • TSJ
      : Code the interest to the Taxpayer, the Spouse, or as Joint. If you're here from the
      Broker
       screen, this field doesn't exist because the coding for the Taxpayer, Spouse, or Joint is inherent to the entire
      Broker
       screen. Consequently, the
      Interest Income
       statement automatically picks up the code from there.
    • Payer:
       Enter the payer name.
    • Interest income:
       Enter the total taxable interest income. Don’t include any adjustments for accrued interest or any tax-exempt amounts.
  4. Create another line item and enter the following:
    • For the
      FS
      ,
      TSJ
      , and
      Payer
       fields, repeat the data entry from the previous step.
    • Type Code
      : Enter
      4 - Accrued Interest
      .
    • Interest income
      : Enter the accrued interest as a positive amount.

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