ACCRUE INTEREST PAID: Form 1041. Has this been resolved?
I could not find where in the Form 1041 software to enter accrued interest purchased on US TREASURY bonds for which interest was received (on Form 1099-INT). Others have had this issue but I see no solution five years after the first post about it (in 2021). Clearly, a negative number does not work as a separate line item. Also, those who have had this problem know that we are to report the 1099-INT amount and the subtraction is to be a separate line item (See IRS instructions). Please let me know since clicking around in the software has been a fruitless attempt to locate the answer myself. Thank you.
Try entering it as regular accrued interest paid. The federal return will be correct.
Then you 'll have to figure out how to get the state adjustment for US Obligation interest to be correct. Hopefully there is a way to adjust.
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