Taxable interest (1040)

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If you have a 1099-INT or 1099-OID, visit Form 1099-INT Data entry and/or Form 1099-OID Data entry.

Otherwise, to enter taxable interest and report it on Schedule B:

  1. Open the Income folder.
  2. In the B&D screen or the Broker screen, open the Interest income statement. (Only use the Broker screen if you want to enter a consolidated 1099.)
  3. Complete the following fields in the Interest income statement.
    • F/S: If the interest is federal-only or state-only, code it as federal or state. To report the interest on both federal and state, leave this field blank. If there are multiple states on the return, see Entering interest and dividend income for a multi-state return.
    • TSJ: Code the interest to the Taxpayer, the Spouse, or as Joint. This field does not exist if you come from the Broker screen because the entire Broker screen is coded to the Taxpayer, Spouse, or Joint and the Interest income statement automatically picks up the code from there.
    • Type Code: Leave blank.
    • Payer: Enter the payer name.
    • Interest income: Enter the amount of taxable interest.
  4. If you skipped fields during these steps, fill them in as needed for your client or to get the desired result on Schedule B.

Nominee, accrued, OID, or ABP Adjustments

If you need to make an adjustment, do not manually adjust the amount in the Interest income field. Instead:

  1. Create a second line in the Interest income statement.
  2. Enter code 3, 4, 5, or 6 in the Type code field.
  3. Enter the adjustment as a positive amount in the Interest income field.

UltraTax CS calculates a subtotal for each code and reports it on Schedule B.

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