In Box 85 - Bond premium on tax-exempt bond, enter the amount of bond premium related to the federal tax-exempt interest. This amount is included in line 8. 33 of accrued interest you collected on the date of sale, for total tax-exempt interest income of $711. We've launched a new fund to expand our tax-exempt bond ETF (exchange-traded fund) lineup. Subtract this amount from the subtotal, and enter the result on line 2. I. The bond’s maturity period is 10 years, and the face value is $20,000. I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. The U. 6045-1(n)(5) that you did not want to amortize the premium under section 171, or for a tax-exempt covered security acquired at a premium, your payer may The adjustment will reduce your amount of reportable tax-exempt interest on Form 1040, line 8b. Tax Exempt Bonds. In addition, the rules vary depending on the issuer of the bond (taxable bonds vs. Report the bond’s interest on Schedule B ( Form 1040A or 1040 ), line 1. See § 6. (B) generally. Status Open. This premium is due to the fact that the bond is paying a higher interest rate than the stated rate for similar bonds. How Municipal Bonds Work . It usually occurs when companies issue bonds at a price less than their redemption value at maturity. Submitted by David Ch on 05-04-2021 03:18 PM. When taken in total, the reporting from the two brokerage firms correctly shows the tax exempt interest and the tax exempt bond premium amounts. 07 percent, compounded annually. (March 27, 2023) As part of ongoing efforts to improve service for the tax-advantaged bond community, the IRS accepts electronic filing of Form 8038-CP, Return for Credit. o It is also possible that a bond that was issued with OID is later bought at a premium. If the state pays the high-income household $100 in interest, the household will see tax savings of $39. The tax exempt interest from your bond will be reported as a net amount on line 2a of Form 1040. This amount reduces taxable interest and is notated. 171–1, the amount of bond premium is $10,000 ($110,000−$100,000). See the Instructions for Form 6251. In the case of a bond (other than a bond the interest on which is excludable from gross income), the amount of the amortizable bond premium for the taxable year shall be allowed as a deduction. BOND ORIGINALLY ISSUED AT A PREMIUM HELD TO MATURITY (023015K58) ISSUER: CITY A Coupon: 2. Visit the Marietta Development Authority's webpage to learn more about MDA bond financing or contact The Economic Development Division for assistance. tax-exempt bonds. Note: The net amount will appear in Box 110 and will flow to the state return. 2 of Notice 2010. 171–2(c) Example 4. Despite being shown as (ii) Amount of bond premium. S Treasury securities. tax-exempt Bond with bond premium must. Enter a description and a positive amount for the state tax-exempt interest. So when the bond matures, your basis will be the face value of the bond. When you purchase a bond or note at a discount, you'll get Form 1099-OID (Original Issue Discount). The bond premium allocable to the accrual period ending on February 1, 2000, is. This means that a 20-year municipal bond that yields 2. Municipal bonds have a face value. Box 11 should report the bond premium that was allocated to the interest paid during the tax year. 8 billion Vanguard Tax-Exempt. Form 8038 may not be filed before the issue date and. Vanguard today launched the Vanguard Short-Term Tax-Exempt Bond ETF (NYSE Arca: VTES). Box 14: Tax-exempt and tax credit bond CUSIP. 2% bonds due 1/1/89 — Interest on Bonds E E R. The New Jersey return asks what portion is tax exempt (due to federal or New Jersey obligations). This is all very confusing in light of 1. If half of your Social Security benefit plus other income, including tax-exempt muni bond interest, is between $32,000 and $44,000 for a joint tax return ($25,000 to $34,000 for single filers), up to 50% of your Social Security benefits may be taxable. I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. Tax software shows 6,400 on form 1040 line 2a (Exempt interest). Click Interest on 1099-Int, click edit/add. The Treasury bond interest is reported in box 3, but that 1099-INT also has box 1 and box 8 $$ on it. • Line 11: Bond Premium – Shows the total amount of bond premium for taxable obligations. 3. Report the bond’s interest on Schedule B (Form 1040A or 1040), line 1. You must also enter the letter E in the NAEOB column and the exempt amount in the NAEOB Amount column. The tax-exempt portion of the original issue discount bond with respect to a stripped coupon or stripped bond is the excess of the stated redemption price at maturity (or in the case of a coupon, the amount payable on the due date of the coupon), over an issue price that would produce a yield to maturity as of the purchase date equal to the. Interest derived from bonds issued by California or its political subdivisions, the federal government, the District of Columbia (issued before December 24, 1973), or territories of the United States. Was the bond premium on tax exempt interest (Box 8)? If so, the amount is not taxable and the bond premium, which is an amount you paid to get the bond, is accrued and actually a deduction from the interest income itself. From the Main Menu of the Form 1041 select: Income. If the bond yields tax-exempt interest, you must amortize the premium. 3% tax-equivalent yield, would offer inflation-beating returns every year—right up until. §1. • All other tax-exempt private activity bonds. Select Federal Taxes. 10. The federal return asks if any portion was from US Government Interest. I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. Because bond premium amortization is mandatory for tax-exempt Bonds, a Bond holder who has acquired a tax-exempt Bond with bond premium must amortize the premium. Under § 1. In the next page, - enter the NON-covered premium amount as a positive number, and. S Treasury securities. For this purpose, a bond can be in any form of indebtedness under federal tax law, including a bond, note, loan, or lease-purchase agreement. A percentage of the income is exempt from state income tax. Form . Tax-exempt and tax credit bond CUSIP no. That tells you how much to amortize on a monthly basis. See § 1. Above those thresholds, up to 85% of your benefits could be taxed. Investors need to understand the potential taxThis was $350 million in new tax-exempt bonds and $50 million in new taxable bonds. bond that is treated as tax-exempt interest to the discount that produces a yield to maturity equal to the coupon rate of interest on (or, at the purchaser’s election, the original yield to maturity of) the whole tax-exempt bond. 03-31-2023, 08:59 AM. 42%. 6045-1(a)(15)(i)(C) to determine if a debt instrument is a covered security. Tax-exempt interest $ 9 . Box 13 – 15. 5. Therefore, the OID on tax-exempt bonds is tax free, while the OID on taxable securities is subject to taxation as interest income. Under Wages & Income select Interest on 1099-INT. If only two of the three agencies rate. Instead the amortization amount is just showing in the 1099 in the "Adjustments" section, under "Bond premium - Tax-exempt obligations (noncovered. However, in the case of a taxable bond, if you have beenHow to report acquisition premium on tax exempt bonds. The tax rules in each of these situations can be fairly elaborate and often require an investor to make elections and keep detailed records on the bond. It offers a 5% coupon rate that is paid semi-annually and with a yield to maturity of 3. Ultra Short Bond Fund - the Advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0. Follow these steps to make a manual adjustment for the bond premium you paid on your tax-exempt and taxable bonds: Select Federal Taxes Under Wages &. My interest income is $0. What if I have income from obligationsAn individual who received $421 in interest from bonds issued by another state and purchased after December 31, 2011, will have to “add back” $421 to the amount of income used to calculate the tax obligation for Indiana. Where is the Definition of Governmental Bonds? Treas. 74 years, while the duration of the 3% premium bond would be 4. A trust has amortizable bond premium on both in-state tax exempt bonds and out of state tax exempt bonds. Taxable Interest $30. 00 Market discount (noncovered lots) 0. UltraTax CS TL 32075 Form Field Name Not Shared . To enter the bond premium in Turbo Tax, Go to Income. In Box 111 - State of origin, enter the 2-digit state code. Because the interest payments on the debt instrument are qualified stated interest, the stated redemption price at maturity of the debt instrument is $100,000. Include in box 8 any accrued qualified stated interest on these bonds sold between interest dates (or on a payment date). Client has 1099-Int and within the paperwork there is an amount for "Noncovered Bond Premium on Tax-Exempt Bond" and an amount for Welcome back! Ask questions, get answers, and join our large community of tax professionals. Marietta City Hall. The fund has an expense ratio of 0. 25%. See the Instructions for Form 6251, Alternative Minimum Tax for Individuals. The total amount or a portion of tax-exempt income (reported as Specified Private Activity Bond Interest) must be taken into account in computing the federal alternative minimum tax applicable to individuals, and may be subject to state and local taxes. Box 6 - Acquisition premium. However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year). Follow these steps to make a manual adjustment for the bond premium you paid on your tax-exempt and taxable bonds: Select Federal Taxes Under Wages &. Municipal bonds ETFs are generally free from federal and state taxes if they hold only tax-exempt bonds. Municipal Bond Acquisition Premium. Vanguard Tax-Exempt Bond Index Fund Admiral Shares (ticker: VTEAX) 0. Vanguard's $199 billion municipal bond lineup includes a wide range of actively managed national, state-based, high-yield, and money market funds, as well as the $20. It also required that municipal bonds must meetVanguard's $199 billion municipal bond lineup includes a wide range of actively managed national, state-based, high-yield, and money market funds, as well as the $20. 0745% compounded annually. The amount is used to reduce the amount of tax-exempt interest reported on line 8b, Form 1040, and also reduces the taxpayer's basis in the bond. However, if tax-exempt bonds incorporate a tax-related convenience premium, these premia may be larger in high-tax states where the protection from taxation these bonds provide may be particularly prized by tax-averse investors. IRC § 103 does not mention governmental bonds, but it does refer to. 10-2019). linduca1216. For a tax-exempt covered security acquired at a premium, see Box 13. S Treasury Obligations. In Box 85 - Bond premium on tax-exempt bond, enter the amount of bond premium related to the federal tax-exempt interest. If you have an amount listed in Box 13, please disregard unless you are. Municipal Income Fund would calculate that portion of the tax-exempt interest dividends they received from the fund that may be exempt from Massachusetts income tax. What should I enter in the Type Code field in the interest and dividends statements? How do I enter income from a private activity bond?However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year). 00 Bond premium- Tax-exempt obligations (AMT, noncovered lots) 0. Bond premium $ 12 . This is an obligation issued by or on behalf of a governmental issuer for which the interest paid is excluded from the holder's gross income under section 103. “Vanguard Short-Term Tax-Exempt Bond ETF is built to optimize tax efficiency for investors seeking to. This amount is listed in Box 11 for corporate bonds, while Box 12 includes such amounts for Treasuries and Box 13 has tax-exempt bond premium amounts. The Bloomberg Municipal Bond Index is a rules-based, market-value-weighted index engineered for the long term tax-exempt bond market. savings bonds. (2) In lieu of any deduction under Section 24360, the amount of any premium so allocated to any interest. Here's where the fun begins. " Exempt Interest Dividends Form 1099-DIV, Box 12. 11 If tax-exempt Bonds are held to maturity and their principal repaid in full, the Bond holder generally. The 2017 tax law increased the phase-out thresholds for AMT meaning fewer filers will be subject to AMT under the new tax laws. Is the line 8 amount already "adjusted" for the line 13 amount, or is the interest I sh. The price you pay for the bond will include this accrued interest. Fund size: $31 billion. State identification no. To properly enter this and resolve the diagnostic, net the amount of Municipal Bond interest by subtracting $100 from the $500 total and entering $400 in the applicable Municipal bond input field. Section 744 & 745 - Interest on Bonds No Port Authority of New York No Post Savings Certificates - Not. " Fidelity does it according to the IRS guidance. In TaxSlayer Pro, don't enter. Reg. Also, if you acquired a tax-exempt OID bond at an acquisition premium, only report the net amount of tax-exempt OID on line 2a (that is, the excess of tax-exempt OID for the year over the amortized acquisition premium for the year). Category Muni National Long. 67. A portion of your income. Steve McFee is the fund’s portfolio manager. However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year). o It is also possible that a bond that was issued with OID is later bought at a premium. This amortized amount is not deductible in determining taxable income. 82%. Then select Tools. 00 10- Exempt-interest dividends (includes line 11) 0. Page 3 of 8 * This is important tax information and is being furnished to the Internal Revenue Service. Tax-exempt state and local government bonds. The amount entered as municipal bonds correctly gets asdded back on the NYS return on line 20. R. Expenses (other than interest expense) connected with federally tax-exempt income that is taxable to New York State: X: X: X: X: S-204: Amortizable bond premiums on bonds that generate federally tax-exempt interest income that is taxable to New York State: X: X: X: X: S-205: Wage and salary expenses allowed as federal credits but not as federal. The bond comes with five years until maturity and a par value of $1,000. The adjustment will reduce your amount of reportable tax-exempt interest on Form 1040, line 8b. On the 1099-INT box 13 has an amount of $ 13,833 of which all is under "Tax-exempt obligations (covered lots)". Effectively, that means the yield on a municipal bond paying 3. See the instructions above for a tax-exempt covered security acquired at a premium. The amounts from box 6 and 7 are used to generate a Foreign Tax Credit. A reissuance is a deemed exchange of the modified bond for the original bond. (1) The amount of any bond premium shall be allocated among the interest payments on the bond under rules similar to the rules of subdivision (c) of Section 24361. Fund management. Subtract the bond premium amortization from your interest income from these bonds. In Schedule B, you should see under "ABP Adjustment" the negative of the sum of. 15 . If the sale price is higher than the purchase price, there may be a gain on the sale. My interest income is $0. If the bond yields tax-exempt interest, you must amortize the premium. Box 14: Tax-exempt and tax credit bond CUSIP. In Box 88 - State, enter XX. On January 15, 1999, C purchases for $120,000 a tax-exempt obligation maturing on January 15, 2006, with a stated principal amount of $100,000, payable at maturity. State identification no. In fine print is says "original cost basis $10,368". Form 8038-CP - Availability of Electronic Filing; Mandatory Electronic Filing for Certain Filers in 2024. For a taxable covered security acquired at a premium, unless you notified the payer in writing in accordance with Regulations section 1. Vanguard, one of the world’s largest asset managers, bolstered its exchange traded fund lineup with the addition of the Vanguard Short-Term Tax-Exempt Bond ETF (VTES). For a specified private activity bond with OID, report the tax-exempt OID in box 11 on Form 1099-OID and the tax-exempt stated interest in boxes 8 and 9 on Form 1099-INT. For a specified private activity bond with OID, report the tax-exempt OID in box 11 on Form 1099-OID and the tax-exempt stated interest in boxes 8 and 9 on Form 1099. To report amortized bond premiums on tax-exempt bonds from 1099 box 13 follow these steps. However, each year you must reduce your basis in the bond (and tax-exempt interest otherwise reportable on Form 1040, line 8b) by the amortization for the year. Once information is completed, Lacerte generates an election statement with the election language and bond information. 00 interest you collected on 3/31/09 and the $83. If a regu-lated investment company (RIC) within the meaning of section 851 has excess bond premium for an accrual periodThis amortized amount is not deductible in determining taxable income [*]. 9. 171–1, the amount of bond premium is $10,000 ($110,000−$100,000). For Muni bonds, any Premium amortization (for any premium you paid, other than the accrued interest) will be reported in box 13 _____*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice. (b) Amortizable bond premium (1) Amount of bond. Fidelity Learn. (3) Cross reference. That percentage varies from year to year. Is the line 8 amount already "adjusted" for the line 13 amount, or is the interest I sh. The amortization is calculated by: First, calculate the bond premium by subtracting the face value of the bond from what you paid for it. . tax-exempt bonds). Though interest on these bonds is taxable, they often offer higher. 25% equals 4. following rules shall apply to the amortizable bond premium (determined under subsection (b)) on the bond: (1) Taxable bonds. How to enter an election to amortize bond premium. S. If the Tax-exempt income is coming from a Passthrough it is entered in Passthrough K-1's, Screen 23. Since the coupon rate is paid semi-annually, it means that every six months, a coupon of $25 ($1,000 x 5/2) will. C. Actually, there is not a deduction for the premium you paid for your tax-exempt bonds on your federal return. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines. The bond pays out interest, but loses $368 of value during the holding period. You have it backwards unfortunately. 25% equals 4. linduca1216. 00 14-Tax-exempt and tax credit bond CUSIP number ORIGINAL ISSUE DISCOUNT AND. U. 10) ($82. Go to Interest and Dividend Income. 15 . Tax-exempt interest distribution (from your 2022 Tax Statement. The tax rules in each of these situations can be fairly elaborate and often require an investor to make elections and keep detailed records on the bond. However, in the case of a taxable bond, if you have been How to report acquisition premium on tax exempt bonds. To determine the bond premium amortization we multiply the acquisition cost times the purchase yield ($107,485)* (. 6251 (which most people won't care these days). Bonds and bond funds are taxed in 2 ways—based on the income that's distributed and on any gains if the investment is sold at a profit. A. read moreor qualified private activity bonds, such as qualified 501(c)(3) bonds. BOND ORIGINALLY ISSUED AT A PREMIUM HELD TO MATURITY (023015K58) ISSUER: CITY A Coupon: 2. You. What are the benefits of tax-exempt bonds? Interest rates on tax-exempt bonds are considerably lower than interest rates on comparable taxable obligations. your basis at the call date after amortizing the premium using the yield to call. 00 per bond1 (also known as par). The interest payments on the bond are qualified stated interest. State. But, Turbo Tax is only adding the excess of tax exempt interest over bond premium on tax exempt bonds (similar to the calculation on line 2a of. B&D Interest Income State ID No. 9. 07%. You can do the following steps to enter your 1099-OID in TurboTax: Jump to. TurboTax Online. The total amount or a portion of tax-exempt income (reported as Specified Private Activity Bond Interest) must be taken into account in computing the federal alternative minimum tax applicable to individuals, and may be subject to state and local taxes. Follow these steps to report amounts from Form 1099-OID. For bonds issued after 1984, the OID is treated as interest. *Panama Canal Bonds Specifically Exempt from Tax by U. itonewbie. Supplemental Info not reported to IRS: Accrued Interest Paid on Purchases $1229. I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. Go to Screen 46, Elections. A bond with a face value of $250,000 and a stated rate of 12% is now being offered at 101. 1099 from bond funds and tax exempt amount. Box 12 Bond Premium on U. Tax-Exempt Private Activity Bonds Qualified private activity bonds are tax-exempt bonds issued by a state or local government, the proceeds of which are used for a defined qualified purpose by an entity other than the government issuing the bonds (the “conduit borrower”). For Pennsylvania personal income tax purposes, a premium paid on a bond is deemed to be an investment in the bond to obtain the higher bond interest rate. 09%. However, each year you must reduce your basis in the bond (and tax-exempt interest otherwise reportable on Form 1040, line 8b) by the amortization for the year. 9. tax-exempt Bond with bond premium must amortize. Adjustments can be entered in Adjustments, Screen 40. Bond premium on Treasury obligations $ 13 . Bond premiums on tax exempt are not adjusted at the federal level. The second de minimis rule is the De Minimis Market Discount Rule, which only indirectly applies to OID bonds, but has significant effects, particularly Reporting interest and bond premium. Boxes 12 - 14 show state. Enter the state that pays your tax-exempt. Because discount bonds are sold below face value, it is expected. Consolidated 1099 When tax exempt interest is partially taxable to the state, do the following: Go to Income > Consolidated 1099Tax exempt interest is entered in State Tax-exempt interest (U. 171–1, the amount of bond premium is $30,000. (ii) Amount of bond premium. I can't do a manual adjustment as I'm doing a standard deduction, not itemized deduction. You have it backwards unfortunately. It should show 6,000 = 10,000 - 2,000 - 2,000. It has four check boxes. It is a municipal bond that matured and the premium was more than tax exempt amount. 1. I'm. Note that unless her tax situation. Under Wages & Income select I nterest on 1099-INT. Both will achieve the same result. • Although there is a box for. Is the line 8 amount already "adjusted" for the line 13 amount, or is the interest I sh. Market Discount —For a taxable or tax-exempt covered security,Exception for De Minimis Bond Premium: If the net premium and accrued interest received from the sale of bonds is not more than $50,000, the city or town, with the approval of its mayor, city or town manager or select board (as applicable), may apply such amount to the payment of indebtedness. When Owned by Trusts or Estates: Under Conn. Minnesota Bond Premium Adjustment. How do you record bond premium on tax-exempt bonds? If the bond is a tax-exempt municipal, you report the loss of premium value and subtract the loss from. From a tax standpoint, life would be much simpler if all bonds were pur-chased at their par value. Importing financial institution data into Lacerte with Tax Import. 171–4 for rules relating to the election to amortize bond premium on a taxable bond. Tax Topic 403 - Interest Received. Premium: 4%: 6%: $6: $106: $103. The payer may, but is not required to, report the OID for a tax-exempt obligation that is a covered security acquired before. If you bought a TAXABLE bond at a PREMIUM and redeemed it at MATURITY: Your cost basis is the original purchase price per bond from the trade confirmation. For the purpose of this example, assume an investor had a tax-exempt interest dividend distribution of $1,000. It is possible to acquire an OID bond in the secondary market at a premium. While municipal bonds are available in both taxable and tax-exempt formats, the tax-exempt bonds tend to get the most attention because the income they generate is, for. including tax-exempt muni bond interest, is between $32,000 and. Tax-exempt obligations. 51%, while the premium version (FZEXX) has a seven-day yield of 2. Box 13 Bond Premium on Tax-Exempt Bond shows the bond premium for the year for covered non-taxable securities. To. TaxWise calculates this amount to Form 6251. A new accounting rule that changes the calculation of bond premium amortization on certain callable debt securities could create tracking headaches due to the book-to-tax differences that might result. Enter your 1099-INT information, select Continue. withholding. In box 112 - FS, enter S. I would, however, use D4 for what's reported in Box 13 for covered securities and reserve E (T) for noncovered securities where amortization would have to be computed offline. Specified private activity bond interest $ 10 . Here's what you need to know about this type of interest and tax form. (or it was called): Your cost basis at the date of sale is determined by the yield to maturity method. However, part of the OID on a stripped tax-exempt bond, or a stripped coupon from such a bond, acquired after June 10, 1987 could be taxable. • the bond-financed property will be OWNED by the governmental unit. Private Activity Bond - PAB: Tax-exempt bonds issued by or on behalf of local or state government for the purpose of providing special financing benefits for qualified projects. F. See Publication 550. See Box 13 Bond premium on tax-exempt bond X Box 15 State B&D Interest Income State W/H Box 16 State identification no. For purposes of the restrictions against federal guarantees of tax-exempt bonds under § 149(b), a Build America Bond is not treated as federally guaranteed by reason of the credit allowed under § 54AA(a) or § 6431. S. Box 3 - Early withdrawal penalty. His amortizable premium is $10 per year. 00 9- Noncash liquidation distributions 0. In Box 110 -. Client has CA muni bond with tax exempt interest but also a bond premium reported in box 13. The net amount is properly reflected on the 1040, line 2a. Level 7. §12-701(a)(10)(A)(vi) and (vii), any interest on indebtedness incurred or continued to purchase or carry obligations or securities, the interest on which is exempt from Connecticut income tax, and the amortizable bond premium for the taxable year on any bonds or obligations, the interest. I think you meant Box 13 on 1099-INT. A premium bond is one in which the market price of the bond is higher than the face value. You must complete your federal tax return, Form 1040/1040-SR, through the federal adjusted gross income (AGI) line before. The above tells us to reduce tax-exempt income by the Box 10 amount. 8 billion Vanguard Tax-Exempt. Yes, we have an entry in Box 10 and Box 11. Calculate the return. How you. Is the line 8 amount already "adjusted" for the line 13 amount, or is the interest I sh. 17 . If a net amount of interest appears in box 8 or 9, whichever is applicable, box 13 will be blank. One section of the tax rules pertaining to hedge bonds provides that to avoid a bond becoming a hedge bond, an issuer must. S. If your combined income is less than $34,000 for individuals and $44,000 for couples filing jointly, up to 50%. Enter your 1099-INT information, select Continue. In TaxSlayer Pro, tax-exempt interest and dividend income can be entered from two different menus within Form 1041. 0300) to get $3,225. C. However, OID bonds purchased in a. 06 and bond premium is $1. TIR 80-2. Instead the amortization amount is just showing in the 1099 in the.