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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11853
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a F1099 which has a category entitled "Adjustments to

Customer Question

I have a F1099 which has a category entitled "Adjustments to Interest and OID"
Included are 5 entries.
Non-qualified interest
Interest shortfall on contingent payment debt
Bond premium (tax exempt) noncovered lots
Acquisition premium non-Treasury obligatons non covered lots
Market discount.
I assume that the bond premiums and market discounts are just bond premiums that need to be amortized. In reading the discussion it appears that the non-qualified interest must be reported as interest income, but how do I show it on the return?
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,
That's right. It's just reported as interest income.
This is reported on Schedule B. See this from IRS:
List each payer's name and the amount received from each payer on Form 1040A, Schedule B, Part I, line 1, ...
... or Form 1040, Schedule B, line 1.
Include all OID and periodic interest shown on any Form 1099-OID, boxes 1, 2, and 8, you received for the tax year. Also include any other OID and interest income for which you did not receive a Form 1099.
You can read more about this here:
http://www.irs.gov/publications/p1212/ar02.html#en_US_201412_publink1000206339
Let me know if you have questions ...
lane