its an adjustment on the sale of stock, why would it be interest?  Are you thinking of market discount on a bond?

Only the accrued market discount on LT transactions go to sch B.  ST does not since it is already taxed at ordinary rates.

It's not from sale of stock but from redemption of a US Treasury obligation and the gain or loss on  Form 1099-B is zero. Besides, the government instructions for Form 8949 says to report market discount as interest income on Schedule B. I found the answer to my question. If you  double click on any data field on the 1099-B worksheet, it opens capital gain (loss) adjustment worksheet and down below the page on Part IV that's is where you enter the amount of the interest income to go to Sch B. I was just wondering why you have to manually enter the amount. Why is it not automatically populating that field when you enter the adjustment and assign code D on the 1099-B worksheet?

I  don't think the distinction between LT and ST matters. All market discount should be reported as interest income on Sch B.