Is 1099-INT Box 1 blank normal for I-Bonds from Treasury?

Thanks for explaining! So does that mean the interest is taxed differently than regular bank interest, or is it all the same in the end? Also, is all of that Box 3 amount federally taxable but maybe state tax-exempt?

The interest is federally taxable just like regular bank interest, so in that sense it's the same in the end for your federal return. The difference is that U.S. Treasury interest (including I-Bonds) is exempt from state and local income taxes, which is a nice benefit! Yes, you're exactly right - the entire Box 3 amount is subject to federal income tax, but it's exempt from state and local income taxes. When you use tax software, it should automatically handle this state tax exemption when you enter the information correctly from Box 3.

How does this work with multiple 1099s? I have like 6 different ones this year (bank accounts, investment accounts, and I-bonds). Would the service help organize all of them?

Does it actually connect to tax software or do you still have to manually enter everything after getting the explanation? Sounds useful but wondering how much work it saves.

It handles multiple 1099s really well! You can upload all of them at once and it categorizes them by type. It analyzes each form separately but then gives you a consolidated view of your total interest income across all sources, which is super helpful when you have multiple accounts. It doesn't directly connect to your tax software, but it gives you very specific guidance on exactly where to enter each number in popular software like TurboTax or H&R Block. I found this actually helped me understand my taxes better than just having it automatically filled in, but it definitely saved me time researching where everything should go.

Wait, so you pay a service to call the IRS for you? How does that even work? Doesn't the IRS need to verify your identity and stuff when you call?

Sounds like a scam tbh. No way the IRS would allow a third party service to hold places in their phone queue. And even if they could, why would anyone trust some random company with their tax questions instead of just waiting on hold themselves?

The service doesn't talk to the IRS for you - they just hold your place in line. The way it works is they have an automated system that navigates the IRS phone tree and waits on hold. When they're about to connect to an agent, they call you and connect you directly to the IRS agent. You do all the talking and identity verification yourself. It's not for tax advice - it's literally just to avoid waiting on hold for hours. When the agent comes on, it's just you and them talking directly, exactly like if you'd called and waited yourself. I was skeptical too but it saved me from having to redial the IRS fifty times or sit by my phone for 3 hours on hold.

Does TaxAct have a cheaper option if you're just reporting W-2 and some 1099-INT forms? I've been using TurboTax but their prices keep going up every year.

Yeah, TaxAct definitely has cheaper options than TurboTax! Their basic version handles W-2s and 1099-INTs just fine and costs a lot less. My dad switched from TurboTax about 3 years ago and says it's just as good for his needs. They have a specific section for savings bonds and treasury interest that makes sure it's handled right for state tax purposes. I think most of the tax software options (FreeTaxUSA, H&R Block, etc.) are getting better at guiding you through reporting I-Bond interest correctly, but you do need to pay attention to where you enter it.

How much work was it to file the amended return? I think I might have made the same mistake last year but not sure if it's worth the hassle to fix.