NAEOB

The NAEOB columns affect ONLY the federal return. If the interest qualifies for any of the adjustments described below, type the appropriate letter (N, A, E, O, or B) in the NAEOB column and the amount that should be subtracted from taxable interest in the NAEOB Amount column. For more information, press Shift+F1 for IRS instructions.

Nominee Distributions

If the taxpayer received interest as a nominee (that is, in the taxpayer's name but the interest actually belongs to someone else), you should enter all interest income on the Interest statement. You cannot link to the statement from this line; you can link from lines 1b-1g.

Accrued interest

When you buy bonds between interest payment dates and pay accrued interest to the seller, this interest is taxable to the seller. If the taxpayer received a Form 1099 for interest as a purchaser of a bond with accrued interest, you should enter all interest income on the Interest statement. You cannot link to the statement from this line; you can link from lines 1b-1g.

Tax-exempt interest

If the taxpayer received a Form 1099-INT for interest that is tax-exempt on the federal return, you should enter all interest income on the Interest Statement. You cannot link to the statement from this line; you can link from lines 1b-1g.

OID adjustments

If the taxpayer is reporting OID (Original issue discount) in an amount less than the amount shown on Form 1099-OID, you must enter all interest income on the Interest Statement.

ABP adjustments

If the taxpayer is reducing any interest income on a bond by the amount of amortizable bond premium (ABP), you must enter all interest income on the Interest Statement.

For more information about these types of interest, please see the IRS Schedule B instructions

This information applies to all years of the UltimateTax software.