1099-INT for Treasury Bond

[dolebherz]

Federal Review identifies an error in Schedule B – 1099-INT for a Treasure EE bond that matured.  I reported the interest in each year the interest was paid.   Therefore, in 2023, which is the year the bond matured, I would pay tax on the interest in 2023, not previous years.  To follow this methodology, in the Adjustment to Interest section I check box U on the 1099-INT for the Treasury Bond and identify the adjustment amount to be subtracted from what the Treasury reported as interest (box 3).

However, 2023 Turbotax Premier identified this as an error and disallowed an electronic submission of the taxes.  I talked with Intuit support and they required I purchase time with their CPA experts to discuss the situation.  To submit the tax documents by 4/15/2023 I printed and submitted hard copy.

Any input regarding how I should have processed the return is appreciated.

[HollyP]

It sounds like you may have used a manual override in the Forms mode of TurboTax for Desktop, because the entries that you describe are the correct way to adjust for U.S. savings bond interest previously reported. Returns with manual overrides can't be efiled. See Why can't I e-file my return?

[dolebherz]

Holly P,

Thanks so much for your response.  It's a bummer to learn that the manual override I used, which looks to be the correct way to report the interest, results in the inability to efile.  Maybe future versions of Turbo Tax  will be enhanced to allow the efiling of certain manual overrides.

Thanks again for your time and reply.

Dave L.