Then select Tools. Premium Bond: A premium bond is a bond trading above its par value ; a bond trades at a premium when it offers a coupon rate higher than prevailing interest rates. Marietta, GA 30060. If these bonds were originally issued at a discount before September 4, 1982, or you acquired them before March 2, 1984, treat your part of OID as tax-exempt interest. (iii) Bond issuance. Capital Group veteran municipal manager Chad Rach will transition out of American Funds Tax-Exempt Bond on Oct. 00 Tax-exempt private activity obligations (AMT, covered lots) 0. Thus, under § 1. *. whether the bond premium is de minimis (17 years times . Here's where the fun begins. The bond comes with five years until maturity and a par value of $1,000. 09%. Yes, you can enter Tax-exempt interest and Specified private activity bond in form 1099- Div. that are exempt from income tax providing these amounts are included in your Illinois base income. 68 of. Then, figure out how many months are left before the bond matures and divide the bond premium by the number of months remaining. TurboTax Online. bond that is treated as tax-exempt interest to the discount that produces a yield to maturity equal to the coupon rate of interest on (or, at the purchaser’s election, the original yield to maturity of) the whole tax-exempt bond. However, some interest you receive may be tax-exempt. While still exempt from Federal Income Tax, such amounts will be reported to the Internal Revenue Service. Bonds are still "exempt" from GST/HST and premiums do not include the 5% (or higher in harmonized jurisdictions) tax levy. One measure of the price volatility of a bond is its modified duration. My interest income is $0. This is all very confusing in light of 1. Note that the tax on OID is paid annually, but the value is needed to determine your basis and the amount of market discount. Gen. In box 112 - FS, enter S. To. The premium paid for a bond represents part of the cost basis of the bond, and so can be tax-deductible, at a rate spread out (amortized) over the bond’s lifespan. See § 1. Box 10 shows bond premium amortization. In the case of a bond (other than a bond the interest on which is excludable from gross income), the amount of the amortizable bond premium for the taxable year shall be allowed as a deduction. Vanguardfi Ultra-Short-Term Tax-Exempt Fund As of September 30, 2023 InvestmentApproach Short-term municipal bonds. Total outstanding tax-exempt bonds for all related companies of the borrower cannot exceed $40 million. The same principle applies to Nominee. Municipal bonds have a face value. Expenses (other than interest expense) connected with federally tax-exempt income that is taxable to New York State: X: X: X: X: S-204: Amortizable bond premiums on bonds that generate federally tax-exempt interest income that is taxable to New York State: X: X: X: X: S-205: Wage and salary expenses allowed as federal credits but not as federal. You are required to amortize the premium each year and this will reduce your basis (what you paid). On the 1099-INT box 13 has an amount of $ 13,833 of which all is under "Tax-exempt obligations (covered lots)". This has been very helpful. At least 75% of the securities held by the fund are municipal bonds in the top three credit-rating categories as determined by a nationally. I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. (iii) Bond premium allocable to the first accrual period. Click Start or Update next to Interest on 1099-INT. Instead the amortization amount is just showing in the 1099 in the "Adjustments" section, under "Bond premium - Tax-exempt obligations (noncovered lots)", but it. The bond premium allocable to the accrual period ending on February 1, 2000, is. For a specified private activity bond with OID, report the tax-exempt OID in box 11 on Form 1099-OID and the tax-exempt stated interest in boxes 8 and 9 on Form 1099-INT. 91%, and the TIC for taxable bonds is 4. The 2% par bond in our example would have a modified duration of 4. Below this subtotal, print “ABP Adjustment,” and the total interest you received. Enter a description and a positive amount for the state tax-exempt interest. Importing financial institution data into Lacerte with Tax Import. However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year). A tax term, the amortizable bond premium refers to the excess price (the premium) paid for a bond, over and above its face value. (B) read as follows: “(i) with reference to the amount payable on maturity or on earlier call date, in the case of any bond other than a bond to which clause (ii) applies, or and “(ii) with reference to the amount payable on. 2. However, in the. 6045-1(n)(5) that you did not want to amortize the premium under section 171, or for a tax-exempt covered security acquired at a premium, your payer mayThe adjustment will reduce your amount of reportable tax-exempt interest on Form 1040, line 8b. I've posted on this in early March but still am having trouble understanding how to amortize the ABP amount on a Municipal bond. Tax-exempt interest $ 9 . Enter your 1099-INT information, select Continue. - Market discount (noncovered lots) 0. Schedule B, line 1. You can delete Schedule B using these steps: Select Tax Tools from the menu on the left. B&D Interest Income State ID No. 14. 11-Bond premium (covered lots) 0. itonewbie. In Box 88 - State, enter XX. Accordingly, the first step in our analysis is to usepairs of. 1099-INT (Rev. In the left-hand navigation, click on Election 1. Investment Policies, local or state investment restrictions, legal requirements such as the arbitrage yield permitted under federal tax rules, limitations in bond indentures or bond ordinances, requirements from bond covenants and/or credit enhancement. tax-exempt Bond with bond premium must amortize. 00 9- Noncash liquidation distributions 0. 1, Schedule M-1) and should be sourced to the appropriate State. 2 or $253,000. See the instructions above for a tax-exempt covered security acquired at a premium. Since Connecticut taxes interest on out-of-state bonds, the taxpayer adds back. System’s Associate Vice Chancellor for Finance and other appropriate System staff will ensure that immediately following the issuance of tax-exempt debt, the following occurs: 5. If the bond yields tax-exempt interest, the taxpayer must amortize the premium. 07 percent, compounded annually. 6 percent bracket). State tax withheld $ $ 2021. 8 billion Vanguard Tax-Exempt Bond ETF (Ticker: VTEB). ) Loans of $10,000 or less between individuals who are not in the. The $25,000 of interest income on state and local bonds, other than the New York City bonds, is to be added to Federal adjusted gross income (see subdivision [a] of this section). T. In the case you provided where there is $30,000 of tax-exempt interest. Vanguard Tax-Exempt Bond Index (VTEB) Annual fee: 0. Credit Quality / Interest Rate Sensitivity —. For example, an investor in a 25% tax bracket would receive the same after-tax income from a tax-exempt bond bearing interest at 6% that he or she would receive from a taxable obligation. (2) Tax-exempt. I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. municipal bonds purchased with accrued interest paid. I have a 1099 with box 8 tax-exempt interest and box 13 bond premium on tax exempt bonds. At this point, the bond may sell at a "premium" or "discount. This is an obligation issued by or on behalf of a governmental issuer for which the interest paid is excluded from the holder's gross income under section 103. If adjustments for bond premiums are not reflected on your 1099-INT, you can manually enter the bond premium adjustment in the 1099-INT section of TurboTax. If you bought a TAX-EXEMPT bond at a PREMIUM and sold it PRIOR to maturity. The IRS is interested in preventing issuers from “hedging” against the risk that interest rates will rise, and therefore issuing more bonds than necessary (overburdening the tax-exempt bond market). Municipal bonds ETFs are generally free from federal and state taxes if they hold only tax-exempt bonds. 22-Sep-2019 6:06am. This amount reduces taxable interest and is notated. 37 billion invested in 4,926 different holdings. Customer reply replied 3 years ago. A. When bonds are purchased at a premium (greater than $1,000 per bond), a prorated portion of the amount over par can be deducted annually on the purchaser's tax return. The banks, however, continued to compute their net income for purposes of the Massachusetts bank excise tax without this adjustment, using original cost basis to yield a loss on redemption. However, in the case of a taxable bond, if you have beenHow to report acquisition premium on tax exempt bonds. I can't do a manual adjustment as I'm doing a standard deduction, not itemized deduction. Scroll down to the Tax-exempt interest subsection. • Line 11: Bond Premium – Shows the total amount of bond premium for taxable obligations. It offers a 5% coupon rate that is paid semi-annually and with a yield to maturity of 3. C. following rules shall apply to the amortizable bond premium (determined under subsection (b)) on the bond: (1) Taxable bonds. Under your last entry on line 1, put a subtotal of all interest listed on line 1. If the taxpayer decides that it is still needed, use the Total municipal bonds and Amortizable bond premium on tax-exempt bonds fields in the Tax Exempt Interest section of Screen 11 to add box 6 and box 11. However, the IRS has provided safe harbors for research agreements. 00 8- Cash liquidation distributions 0. 1099 from bond funds and tax exempt amount. This amortized amount is not deductible in determining taxable income. See Publication 550. This article explains how to input an election to amortize bond premium on Form 1099-INT, line 11. Referenced Sources: Massachusetts General Laws. 1041-US: Interest, dividends, and tax-exempt income FAQs. • Line 8: Tax Exempt Interest – Shows the total amount of tax-exempt interest paid to you during the calendar year by the payer. If the amount of your bond premium amortization for an accrual period is more than the qualified stated interest for the period, you can deduct the difference as a. bonds, T-bills, etc. You choose to use annual accrual periods ending on February 1 of each year. To enter the bond premium in Turbo Tax, Go to Income. You file Form 8888 with your tax return and complete Part 2 to. The price you pay for the bond will include this accrued interest. I net purchased accrued interest (purchased interest) and box 13 on 1099 INT (Bond Premium on TEB) against total Tax Exempt Interest (Box 8 on 1099 INT). S Treasury Obligations. There are three entries block 7 the description (name), box 11 Tax exempt OID ($3700) and block 6 acquisition premium ($790). S Bond Interest . 2% bonds due 1/1/89 — Interest on Bonds E E R. on my 1099-Int: Box 8 Tax-Exempt Interest: $544. The remaining 40 percent are taxed at your ordinary income. The bond’s maturity period is 10 years, and the face value is $20,000. - Form 1099-INT box 11, and. When the bond matures, the bondholder will. For young or lower income tax payers it is probably fine to. Box 11. June 14, 2017. Expense ratio. 67. However, if the. You must also enter the letter E in the NAEOB column and the exempt amount in the NAEOB Amount column. To report the amortized bond premium by: Login to Turbo Tax; Jump to Income and Expenses. • Qualified 501(c)(3) bonds. In line 18 - (13) Bond premium on tax-exempt bond, enter the amount (if applicable). The second de minimis rule is the De Minimis Market Discount Rule, which only indirectly applies to OID bonds, but has significant effects, particularlyReporting interest and bond premium. UltraTax CS TL 32075 Form Field Name Not Shared . 1099 Int - What is the difference between 1099 int Line 13 bond Premium on Tax Exempt says 30,000 and ajustments to interrest portion which says adjustment to bond premium tax exempt $10,000?. NUVEEN INSD TAX-FREE ADVANTAGE MUN FD 1. • Qualified hospital bonds. To enter the Tax-exempt interest and Specified private activity bond interest in Turbo Tax: In Federal, jump to 1099-Div and click add. Enter the amount in Amortizable bond premium on tax-exempt bonds. That percentage varies from year to year. The fund trades on the New York Stock Exchange and comes attached with a 0. 00 Market discount (noncovered lots) 0. Lesson 4 also discusses the rules for depreciation of tax-exempt bond financed property set forth § 168 and the rule under § 57(a)(5) that requires individuals and corporations to include tax-exempt interest from “specified private activity bonds” in income for purposes of figuring the alternative minimum tax. 800%/$107. Municipal Income Fund would calculate that portion of the tax-exempt interest dividends they received from the fund that may be exempt from Massachusetts income tax. Tax-exempt interest $500, $100 of which is attributable to accrued interest. Under § 1. S. This article explains how to input an election to amortize bond premium on Form 1099-INT, line 11. The payer may, but is not required to, report the OID for a tax-exempt obligation that is a covered security acquired before. Muni bond interest can also impact how your Social Security is taxed. That is, a bond issued at a discount might. In the case of a tax-exempt obligation, if the bond premium allocable to an accrual period exceeds the qualified stated interest al-locable to the accrual period, the ex-cess is a nondeductible loss. The DNI of $73,450 is calculated on line 7 of Schedule B. 17 . However, TurboTax will carry your entry from Box 11 in the Dividends on 1099-DIV section to this line automatically. 10-2019). The phase-out threshold is $1,079,800 for 2022 for married filing jointly. box 2 is tax-exempt interest and is not included in interest income on your tax return. 35% 7. 75-1 Treatment of bond premiums in case of dealers in tax-exempt securities. It is possible to acquire an OID bond in the secondary market at a premium. GENERAL OBLIGATION BONDS $102,370,000 Series 2021A Tax-Exempt Bonds $531,385,000 Series 2021B Taxable Bonds Dated: Date of Delivery Due: As shown on inside cover The Series 2021A Tax-Exempt Bonds (the “Series 2021A Tax-Exempt Bonds”) and the Series 2021BAnalyst Note. 82%. Fidelity Learn. 25%. A tax term, the amortizable bond premium refers to the excess price (the premium) paid for a bond, over and above its face value. 10. 30% (0% in CA, CT, NY) The income earned in these funds is fully taxable at the federal level. Form 8038-CP - Availability of Electronic Filing; Mandatory Electronic Filing for Certain Filers in 2024. Bond premium on Treasury obligations $ 13 . ) The federal tax laws allow DED to allocate an annual amount established by formula in tax-exempt bond authority for industrial development, first-time farmers, student. The U. 06 and bond premium is $1. (c) General rule —(1) Tax-exempt obligations. § 171 (b) (1) (C) —. A Longstaff study found that the marginal tax rate embedded into the short term tax-exempt municipal rates is able to identify an average marginal tax rate during a particular period of 41. 00 12-Bond premium on Treasury obligations (covered lots) 0. 171–1, the amount of bond premium is $30,000. 15 State 16 State identification number 17 State tax withheld FATCA filing requirement . Vanguard Short-Term Tax. Bond issue. General Explanation of Tax-Exempt Bonds 1. , prepayment date without penalty) approximately 10-years from the date of issuance. Savers are allowed to buy up to $5,000 of I Bonds directly if they're receiving a tax refund when they file their 2022 tax returns. 1, 2023. If your client needs to file Form 1116 see the following article: Amortizable bond premium on tax-exempt bonds. What should I enter in the Type Code field in the interest and dividends statements? How do I enter income from a private activity bond? How do I enter income that is tax-exempt at the federal level, but taxable at the state level?Therefore: Accrued OID at time of Sale = 6 /10 × $200 = $120. Consolidated 1099 When tax exempt interest is partially taxable to the state, do the following: Go to Income > Consolidated 1099Tax exempt interest is entered in State Tax-exempt interest (U. retirement account. 5. It is a municipal bond that matured and the premium was more than tax exempt amount. For bonds issued after 1984, the OID is treated as interest. 10. (March 27, 2023) As part of ongoing efforts to improve service for the tax-advantaged bond community, the IRS accepts electronic filing of Form 8038-CP, Return for Credit. 15 . A separate clarification, I net purchased accrued interest (purchased interest) and box 13 on 1099 INT (Bond Premium on TEB) against total Tax Exempt Interest (Box 8 on 1099 INT). Learn more. 0745% compounded annually. The tax-exempt portion of the original issue discount bond with respect to a stripped coupon or stripped bond is the excess of the stated redemption price at maturity (or in the case of a coupon, the amount payable on the due date of the coupon), over an issue price that would produce a yield to maturity as of the purchase date equal to the. The tax exempt interest from your bond will be reported as a net amount on line 2a of Form 1040. Under applicable tax rules, the Issuer is legally responsible for the tax-exempt status of the bonds. James Comtois March 9, 2023. The Net expense ratio is the Gross expense ratio minus any reimbursement from the Advisor. Below this subtotal, print “ABP Adjustment,” and the total interest you received. S. *See 2020 Instructions for Schedule B (Form 1040), page 2. The current dispute came about in. From the left of the screen, select Income and choose Interest Income (1099-INT, 1099-OID) . But, Turbo Tax is only adding the excess of tax exempt interest over bond premium on tax exempt bonds (similar to the calculation on line 2a of Form 1040) to federal AGI to arrive at CT AGI. This amortized amount is not deductible in determining taxable income. 15 . Y. Select I need to adjust the taxable amount, select Continue. Instead the amortization amount is just showing in the 1099 in the. Tax-exempt bonds are barred a deduction for amortizable bond premiums under IRC section 171 (a) (2). Non-Covered fixed income holdings (Tax exempt state bonds) reported a bond premium amortizations on a supplemental information schedule of my 1099. Because bond premium amortization is mandatory for tax-exempt Bonds, a Bond holder who has acquired a tax-exempt Bond with bond premium must amortize the premium. State identification no. read more 1 Solution. For single bonds or accounts containing a single bond, enter the CUSIP number of the tax-exempt bond for which tax-exempt interest is reported in box 8 or tax credit bond (including build. You. One section of the tax rules pertaining to hedge bonds provides that to avoid a bond becoming a hedge bond, an issuer must. The OID on the stripped bond that is more than the tax-exempt part is $3. For a covered security acquired with bond premium, you must report the amount of bond premium amortization for the tax year. Enter the total on line 2a of your Form 1040 or 1040-SR. how do I report these in Federal Tax?. You can leave that field blank if Box 14 is empty on your form. Currently our investments are 33% in tax deferred accounts, 5% in Roths and >60% in taxable accounts. Conceptually, this makes sense, because the income is not taxable and therefore no deduction should be allowed. Once information is completed, Lacerte generates an election statement with the election language and bond information. Visit the Marietta Development Authority's webpage to learn more about MDA bond financing or contact The Economic Development Division for assistance. In fine print is says "original cost basis $10,368". Because individual bonds and bond funds distribute income differently and treat your principal differently, there are also some differences in how that income and any capital gains are taxed. 171–1, the amount of bond premium is $10,000 ($110,000−$100,000). (2) Taxable bonds. To figure your gain or loss on the sale or trade of these bonds, reduce the amount realized by your part of OID. Does the bond premium get reported as tax exempt. 89%. Both will achieve the same result. 25% of permissible premium). C. Tax-exempt income. SEC Yield: 4%. A bond sold at par has its coupon rate equal to the prevailing interest rate in the economy. Clarifications would be appreciated, if I am doing this wrong. Private Activity Bond - PAB: Tax-exempt bonds issued by or on behalf of local or state government for the purpose of providing special financing benefits for qualified projects. Form 1099-OID, Original Issue Discount, exists to report income when bonds, notes, or certificates of deposit (CDs) are sold at a discount from their maturity value. Level 7. We've launched a new fund to expand our tax-exempt bond ETF (exchange-traded fund) lineup. (3) Bonds the interest on which is partially excludable. In line 16 - (11) Bond premium, enter the amount. tax-exempt interest received during the year over the amortized bond premium for the year). The city of Marietta offers tax-exempt bond financing through the Marietta Development Authority (MDA) to assist with the. Tax-exempt bond. If the bond yields tax-exempt interest, you must amortize the premium. 171–2(a)(1) through (a)(4)(i)(B). But even though no deduction is allowed, tax-exempt bonds still must amortize the premium on the books under IRC. For purposes of the restrictions against federal guarantees of tax-exempt bonds under § 149(b), a Build America Bond is not treated as federally guaranteed by reason of the credit allowed under § 54AA(a) or § 6431. -or-. Municipal bonds have a face value. Box 3 - Early withdrawal penalty. • Although there is a box for. You remove all of the box 3 $$ (and box 12, if any) and put box 3 (plus 12) on it's own 1099-INT before indicating it's accrued interest. What are non – taxable bonds? Nontaxable bonds, or municipal bonds, are issued by state and local governments. Two provisions of the code eliminate this windfall. The bond premium allocable to the accrual period ending on February 1, 2000, is. If the bond yields tax exempt interest, a taxpayer must amortize the premium. According to IRS regulations, any amount reported in Box 12 of Form 1099-DIV is to be treated as "Tax-Exempt Interest Income. 680The tax-exempt interest and bond premium may come into play in determining the gain or loss on the sale. 1-2022). with adjustments proper to reflect unamortized bond premium, with respect to the bond, for the period before the date as of which subsection (a) becomes applicable with respect to the taxpayer with respect to such bond. Bond premium $ 11. Non-California state bonds. Generally, there will not be a loss. Box 14: Tax-exempt and tax credit bond CUSIP. 00 10- Exempt-interest dividends (includes line 11) 0. Investors need to understand the potential taxThis was $350 million in new tax-exempt bonds and $50 million in new taxable bonds. Enter on 1099-INT worksheet, Box 3b - Interest on Treasury obligations. read moreI received a 1099-INT for an account holding two municipal bonds (from the same state). Market discount on a tax-exempt bond is not tax exempt. R. What should I enter in the Type Code field in the interest and dividends statements? How do I enter income from a private activity bond?However, if you acquired a tax-exempt bond at a premium, only report the net amount of tax-exempt interest on line 2a of your Form 1040 or 1040-SR (that is, the excess of the tax-exempt interest received during the year over the amortized bond premium for the year). This amount is included in line 8. • All other tax-exempt private activity bonds. 1. For a tax-exempt covered security acquired at a premium, enter the amount of bond premium amortization allocable to. 02-17-2020 09:00 AM. Calculate the return. (b) Amortizable bond premium (1) Amount of bond. Tax-Exempt Private Activity Bonds Qualified private activity bonds are tax-exempt bonds issued by a state or local government, the proceeds of which are used for a defined qualified purpose by an entity other than the government issuing the bonds (the “conduit borrower”). Page 3 of 10 * This is important tax information and is being furnished to the Internal Revenue Service. If the bond yields tax-exempt interest, you must amortize the premium. The bond pays qualified stated interest of $10,000 on February 1 of each year. However, each. But, Turbo Tax is only adding the excess of tax exempt interest over bond premium on tax exempt bonds (similar to the calculation on line 2a of. section 1. 171–4 for rules relating to the election to amortize bond premium on a taxable bond. 8 Tax-exempt. 50 with respect to bonds G and H. The bonds mature at par so the total premium paid is $7,485 ($107,485-$100,000. K. When Owned by Trusts or Estates: Under Conn. Status Open. April 11, 1980. 31% (0% in CA, CT, NY) Fidelity Treasury Money Market Fund (FZFXX) 0. Enter your 1099-INT information, select Continue. If your client is subject to state tax, you'd need to look at the supplemental info to determine the out of state portion that would be subject to tax in each state. For this example, Form 1099-Int has 17,000 in box 3 (for treasury bonds) so on the state return (SC) there's a subtraction from federal taxable income for 17,000 on page 2 of SC1040 to arrive at state taxable income which makes perfect sense to me since treasury bond interest is nontaxable to the state. of interest income. Fields highlighted in yellow import into the UltraTax CS Source Data Entry application. Make a note for next year's file. " Exempt Interest Dividends Form 1099-DIV, Box 12. Tax-exempt interest $500, $100 of which is attributable to accrued interest. When governments issue bonds, specific considerations are likely to apply to bond proceeds. In the case of any bond the interest on which is excludable from gross income, no deduction shall be allowed for the amortizable bond premium for the taxable year. So this option. 04-02-2021 10:50 PM. For a specified private activity bond with OID, report the tax-exempt OID in box 11 on Form 1099-OID and the tax-exempt stated interest in boxes 8 and 9 on Form 1099. 000% Dated Date: 8/31/20 Maturity Date: 4/01/27 Issue Yield/Price: 0. Enter 1099-Int information, click. State. HOMEForm 8949. How you. 13 . Because discount bonds are sold below face value, it is expected. 11 If tax-exempt Bonds are held to maturity and their principal repaid in full, the Bond holder generally. 00 11- Specified private activity bond interest dividends (AMT) 0. The total amount or a portion of tax-exempt income (reported as Specified Private Activity Bond Interest) must be taken into account in computing the federal alternative minimum tax applicable to individuals, and may be subject to state and local taxes. 00 14-Tax-exempt and tax credit bond CUSIP number ORIGINAL ISSUE DISCOUNT AND. If you are required to file a return, a negligence penalty or other. tax-exempt bonds. For federal tax purposes, the individual won’t pay taxes on the interest. CT modifies federal AGI by adding tax exempt interest to federal AGI. 51%, while the premium version (FZEXX) has a seven-day yield of 2. Premium Bonds are a type of lottery bond/savings account that offer a chance to win tax-free prizes every month, instead of paying interest—meaning that they have no guaranteed return. 0300) to get $3,225. For Muni bonds, any Premium amortization (for any premium you paid, other than the accrued interest) will be reported in box 13 _____*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice. In fine print is says "original cost basis $10,368". 6045-1 (n) (7) (ii) (A). This is the difference between the redemption price ($100) and the issue price that would produce a YTM of 10% (0. This amount is included in line 8. Under § 1. In Box 85 - Bond premium on tax-exempt bond, enter the amount of bond premium related to the federal tax-exempt interest.