If you received a 1099-OID it should be entered in the program.
OID or Original Issue Discount is a discount on a bond. An OID (Original Issue Discount) is the excess of a bond or note's stated redemption price over its issue price. The "stated redemption price" is usually the face value of the bond or note (say $10,000). The "issue price" is generally the amount at which the bond or note was first sold by the issuer (say $9,500). You will receive Form 1099-OID at the end of the year in order to report the discount of $500. This is your profit and it is taxable interest income for you over the life of the bond.
Reporting OID on your tax return: Box 1 of your 1099-OID Form will contain the amount you need to report on your return. This is the amount for the actual dates of ownership of the bond. Keep in mind, the amount must be adjusted if you bought the bond at a premium.
You may also receive Form 1099-OID for treasury inflation-indexed securities, stripped bonds or coupons, if you received Form 1099-OID on behalf of someone else (nominee), other than your spouse, and for a real estate mortgage investment conduit (REMIC).
For More Information, see About Publication 1212, Guide to Original Issue Discount (OID) Instruments
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