You’re right, I saw “Schedule B” and my mind played a trick on me and I thought it said “1099-B”.Unless I missed it, no one has mentioned 1099-B until now. Why do you think a 1099-B comes into play?Oh no… I just assumed the 1099 I got from Schwab would have all the relevant information (1099-INT and 1099-OID) and my accountant took care of it. Are you sure there is a component that must be recorded on a 1099-B as well? How would I figure this out?
Reading through this thread again, I think my taxes were done incorrectly. I purchased two TIPS bonds in 2023.
On my consolidated 1099 form from Schwab, it has a page that says “accrued interest paid on purchases”, totaling -$398. There is also a “negative original issue discount” of -$3 on one of the TIPS. +$397 is reported on 1099-OID. The TIPS were bought late in the year and did not pay any interest payments, so no 1099-INT.
On schedule B, my accountant put in the $397 from the 1099-OID and I paid federal tax on that.
However, I now wonder if I simply paid for all the accrued interest when I bought the bond (thus not actually earning it) AND paid the taxes on that accrued interest!
If so, I’m glad it was for such a small amount, and may not bother fixing it, but I plan on buying many more TIPS on the secondary market this year to build a ladder, so I want to make sure I get this right for next year.
Finally, I know it is only $3, but for the sake of my knowledge, what needs to be done with the “negative original issue discount”?
Appreciate the help and collective wisdom here. Clearly my accountant didn’t know what to do with these numbers, which were all there on the consolidated 1099 form.
Statistics: Posted by strongboy2005 — Sat Apr 20, 2024 6:29 am — Replies 10 — Views 802