 accrued interest so accrued interest is kind of the interest has has increased but possibly you haven't received the interest at that point in time so when you buy bonds between interest payment dates and pay accrued interest to the seller this interest this interest is taxable to the seller so if you received a form 1099 for interest as a purchaser of a bond with accrued interest follow the rules earlier under nominees to see how to report the accrued interest but identify the amount to be subtracted as accrued interest so you might end up with a similar kind of situation where the 1099 possibly has to be adjusted obviously you have to tie in the 1099 what's on it to what's on your forms or you can have a problem so if you need to have something different than that you would want to show the detail of of the change and the adjustment to it so that so that you could say hey this is what's on the 1099 this is why there's a change to it this is what I'm reporting after that change is taking place original issue discount the OID if you are reporting OID in an amount less than the amount shown in box one or box eight a form 1099 OID follow the rules earlier under nominees to see how to report the OID but identify the amount to be subtracted as OID adjustment similar kind of scenario here you got something possibly different than what's on the 1099 we've got to tie into what's on the 1099 we need to show the work show the detail so that we don't get confused the IRS and a confused IRS with our particular tax return causes us problems however if the pair reported to you a net amount of OID on the bond reflecting the offset of the gross amount of OID by any acquisition is confirmed premium no reduction of the amount of OID income reported to you by the buyer may be needed on schedule B for the bond amortizable bond premium so now you've got you know when you buy the bond if you're buying if you're investing in bonds then it's likely that if you're if you're a passive kind of investor a long-term investor you might be in investing in like mutual funds that have bonds within them which is a little bit different than investing like an individual bonds themselves but a bond when you think about a bond in general you're basically giving money like a note a loan in essence to a corporation or government entity and the rate on the bond is fixed so you might pay actually more than or less more or less than the face amount of the bond if you pay more than the face amount of the bond then you bought the bond at a premium and you've got to allocate basically the premium or the difference in between the premium and the face amount is basically considered interest and then you could deal with this kind of premium problem right you've got this kind of premium problem that could have taxable implications with it so amortizable bond premium so if you elect to reduce your interest income on a taxable bond by the amount of taxable amortizable bond premium follow the rules earlier under the nominees to see how to report of the interest so if that is again the case then you might end up with a situation with your 1099 isn't reporting the proper amount of interest after you take into consideration the amortizable bond premium and you're gonna have to show your work again to not confuse the IRS but identify the amount to be subtracted as ABP adjusted so however if the pair reported to you a net amount of the interest income on the bond reflecting the offset of the gross amount of interest income by the amortizable bond premium no reduction of the amount of interest income reported to you by the payer is needed on schedule B for the bond okay so now we have the tax exempt interest so this would be that scenario where it would have been income but now the IRS is explicitly saying it's exempt for whatever reason that they say they don't they're gonna give some benefit to certain issuers or of debt right some beneficial which possibly are gonna be the states so the government's government so if you if you give money to the loan money to the government then you might get a benefit you can see why they might want to do that as a government entity so if you received any tax exempt interest including any tax exempt OID such as from municipal bonds so those are gonna be government bonds in essence each payer should send you a form 1099 int or form 1099 OID in general your tax exempt status interest should be shown in box 8 of form 1099 int so we saw the 1099 it'll be indicated not you would think in box one but rather in box 8 to say hey you got to report this because you did get income but it's tax exempt so it shouldn't have a federal income tax component for it or or or a calculation to it so for tax exempt OID in box 2 of form 1099 OID and your tax exempt OID should be shown in box 11 of form 1099 OID so enter the total online to a of your form 1040 1040 SR so this would be the tax exempt place I would assume so however if you acquire a tax exempt bond at a premium only report the net amount of tax exempt interest online to a or your form 1040 or 1040 SR that is excess of the tax exempt interest received during the year over the amortized bond premium for the year so also if you acquire tax exempt OID bond at an acquisition premium only report the net amount of the tax exempt OID online to a of form 1040 or 1040 SR that is excess of the tax exempt OID for the year over the amortized acquisition premium for the year if you have more questions about that situation you could see publication 550 for more information OID bond premium and acquisition premium also include online to a of your form 1040 or 1040 SR any exempt interest dividends from a mutual fund or other regulated investment company this amount should be shown in box 12 of form 1099 DIV so we'll talk about dividends later if an amount is showing in box 9 of form 1099 INT you must generally report it on line 2g of form 6251 see instructions for form 6251 if you're in that situation line 3 if during 2022 you cashed series EE or I us savings bonds issued after 1989 and you paid qualified higher education expenses for yourself your styles or your dependents you may be able to exclude part or all of the interest on those bonds so if you've got those bonds in place the EE bonds education then you could take a look at form 8 8 1 5 for more details there