What Is Accrued Interest Paid on Brokerage Statement?
For the year you are reducing the interest received, you will get a 1099-INT from the broker that shows the full amount in boxes 1,3,or 8 (depending on what bonds you hold).
Is the interest paid on a bond taxable?
Tax Reporting: Accrued Interest Paid. Accrued interest paid when a bond is purchased is not taxable to the buyer; instead it is taxable income to the seller. Your Form 1099-INT reports the full interest payment credited to your account.
What is the tax rate for accrued interest?
There are seven tax rates in 2018, ranging from 10 percent to 37 percent. Your tax rate depends on your filing status and income level. For example, suppose you had $1,000 of taxable interest income in 2018, of which $200 was accrued interest. By reporting the accrued interest, you reduce your taxable income by $200.
