![]() If you buy a bond at a discount, you're required to include a portion of the discount each year as taxable interest. These scenarios can happen when you buy an individual bond for less than or more than its face value. Boxes 10 through 13 deal with market discounts and bond premiums.Interest income from private activity bonds typically isn't taxable, but it is necessary for computing alternative minimum tax. Private activity bonds are a type of muni bond meant to fund private projects with a public benefit, such as affordable rental housing. Specified private activity bond interest appears in Box 8.You use this information to calculate your foreign tax credit. ![]() If you paid foreign income taxes on any interest income you received, the amount paid and the country you paid the tax to appear in Boxes 6 and 7.Most people can no longer deduct investment expenses since the Tax Cuts & Jobs Act of 2017 eliminated the ability to deduct these for the 2018 through 2025 tax years. You can add this amount to other tax payments, such as withholding from wages or quarterly estimated tax payments. If you had any federal or state income tax withheld, this is shown in Box 4 and Box 15 through 17.You can deduct these penalties as an adjustment to income on Schedule 1 of your Form 1040. Early withdrawal penalties, such as those required for withdrawing money from a CD before its term is over, appear in Box 2.The figures to focus on are in boxes 1, 3, and 8.Ä«oxes 1 and 3 of Form 1099-INT show regular taxable interest income and taxable interest from US Savings Bonds and Treasury Bonds. In most cases, it's easy to take the numbers from Form 1099-INT and transfer them to the appropriate place on your tax preparation software or tax return.
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