I had 2 TIPS that matured in 2019, got 1099s from Treasury Direct & now I'm stymied about entering the info on Turbotax. (And I guess I'm confused about TIPS generally).
Entering the interest income from the 1099-INT was easy.
But there's also a 1099-B that gives me pause ("Proceeds from Broker and Barter Exchange Transactions"- Huh?). The 2 matured TIPS are listed as "Long-term Noncovered Securities", are described in Box 1a, and the "Proceeds" are in Box 1d. The "cost basis" box (1e) is blank. Under "Reported to IRS" (Box 6) it says "Gross proceeds."
The only place to enter this info on Turbotax seems to be in the "Stocks" section -- is that right
-- but when I tried this and included my actual cost basis ($50K), it looks like the $6K increase in the principal is being taxed both by the US & the state. I thought the increase in principal isn't taxed by the state. What's the right way to handle this?
Any help or advice would be most appreciated!