Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
JohnnyJack1
Level 2

How do I claim a loss on OID interest paid?

 
7 Replies
HelenC12
Employee Tax Expert

How do I claim a loss on OID interest paid?

When you purchase a bond or note at a discount, you'll get Form 1099-OID (Original Issue Discount). The discount is taxable interest over the life of the bond, which gets reported every year you hold the bond, even if you don't actually receive any interest.

 

If the Original Issue Discount boxes 1 through 11 aren't the adjustment you're looking for, continue with the interview. You may be able to adjust the taxable amount on the Tell us if any of these uncommon situations apply screen.

 

Here's how to enter your 1099-OID in TurboTax:

  1. Inside TurboTax, open or continue your return and then search for this exact phrase (we recommend you copy/paste from here): 1099-oid original issue discount
  2. Select the Jump to link at the top of your search results.
  3. On the Miscellaneous Investment Income screen, check the first box for Form 1099-OID and Continue.
  4. Answer Yes on the next screen, and continue to follow the onscreen instructions to import or manually enter your 1099-OID.
  5. If you land on the Form 1099-OID Summary screen, select Add Another Payer, and then follow the instructions to import or manually enter.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
JohnnyJack1
Level 2

How do I claim a loss on OID interest paid?

I don't have an OID form.  I bought a CD  in 2015, then each year for the next 5 years I received an OID which I entered into my taxes.  In 2020, I received the original amount of the CD, but  I did not recover the $200+ that I reported on the OID forms.  Therefore, I need a procedure on how to claim this $ 200 previously reported  over the past 5 years.  

fanfare
Level 15

How do I claim a loss on OID interest paid?

what make you think you recover the tax on the OID discount ?

JohnnyJack1
Level 2

How do I claim a loss on OID interest paid?

Because I never received the discount.  The CD I bought wasn't the standard type, it was based on the Metal Market.  If the metal prices went up, I would be paid a profit at maturity, but if metal prices stayed the same or went down I would not take a loss.  For example:  Buy a  Market safe CD for $ 2000 that matures in 5 years and over the 5 year period report $ 250 in OID discount.  Because the metal market does not go up, at CD maturity it is only worth the original price paid, $ 2,000.00.  Therefore, the $250 OID discount reported was never received and I need to claim it.

sathya9
New Member

How do I claim a loss on OID interest paid?

I have the same issue. Was this resolved?

JohnnyJack1
Level 2

How do I claim a loss on OID interest paid?

No, I never received a solution.  Turbo tax sent me links on how to process an OID, which as you know does not provide a way to recover tax paid on interest income you never received.

sathya9
New Member

How do I claim a loss on OID interest paid?

Thanks. I'll keep looking and post it here if I get an answer from elsewhere. Someone has to know.

Dynamic AdsDynamic Ads
v
Privacy Settings