Form 1099-INT - Exempt with Accrued Interest

Because the IRS does not provide specific guidance on how accrued interest is to be handled with tax-exempt securities, the program does not specifically address this. However, the TaxAct® program does provide for entry of the accrued interest amount in the section for Form 1099-INT Interest Income information entry.

To enter this information in your TaxAct return:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand, then click Interest income (Form 1099-INT).
  3. Click + Add Form 1099-INT to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
  5. On the screen titled Investment Income - Tax-Exempt Interest, enter the 8. Tax-exempt interest amount received from Form 1099-INT, enter the Amount from box 8 that is accrued interest amount, then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.