Get your taxes done using TurboTax

Although the personal versions of TurboTax provide a template to enter a 1099-OID, TurboTax Business does not. Instead, the form is essentially treated in much the same manner as interest income reported on a 1099-INT.

You can report the information from the 1099-OID on the 1041 return using these steps:

1. Click on Federal Taxes > Income
2. In the Interest and Dividends section, click on the Start/Update box next to Interest Income on 1099-INT.
3. On this screen, report the following items from the 1099-OID:

• • Box 1 (OID) and Box 2 (Other Periodic interest) -- add together and enter in Box 1 of 1099-INT.
  • Box 3 (early withdrawal penalty) -- Box 2 of 1099-INT.
  • Box 4 (Fed tax withheld) -- Box 4 of 1099-INT
  • Box 5 (Market discount) - Box 10 of 1099-INT
  • Box 6 (Acquisition premium) - Include in Box 1 of 1099-INT
  • Box 8 (OID on U.S. Treasury obligations) - Box 12 of 1099-INT
  • Box 9 - Investment expense - Enter in the Deductions section of TurboTax:  Federal Taxes > Deductions > Interest expense >Investment interest expense
  • Box 10 Bond premium - Box 11 of 1099-INT
  • Box 11 Tax-exempt OID - Box 13 of 1099-INT