It is impossible to enter 1099-OID in Turbos Tax Business 2022

Thank you for pointing out the difference in procedure between the Business and Personal editions.

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:
4. Box 1 (OID) and Box 2 (Other Periodic interest) -- add together and enter in Box 1 of 1099-INT.
5. Box 3 (early withdrawal penalty) -- Box 2 of 1099-INT.
6. Box 4 (Fed tax withheld) -- Box 4 of 1099-INT
7. Box 5 (Market discount) - Box 10 of 1099-INT
8. Box 6 (Acquisition premium) - Include in Box 1 of 1099-INT
9. Box 8 (OID on U.S. Treasury obligations) - Box 12 of 1099-INT
10. 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
11. Box 11 Tax-exempt OID - Box 13 of 1099-INT

@Tom19i 
 

Thank you for your response.

Having to use a workaround is not up to TT's usual standards. If TT can make it work in TT for personal taxes, it should be able to make it work for TT Business. 

The 1099-INT in TT Business does NOT have Box13 so how can I enter data in a non-existent box??  Ridiculous that there is no template for 1099-OID in TT Business.

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@ilg10402021 wrote:

The 1099-INT in TT Business does NOT have Box13 so how can I enter data in a non-existent box?? 

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Not in the interview part of the program, but Box 13 is on the 1099-INT if you enter Forms Mode and open the form itself.

@ilg10402021 

OK, I get that.  Thanks.

Regarding Acquisition Premium, Box 6, enter that amount in Box 1 as a positive number??

Another tax program I have access to treats the amount in Box 6 as a REDUCTION of taxable interest.

The bonds in question are TAX-EXEMPT bonds that were acquired in 2021 and held for all of 2022.  I do not see how or why Acquisition Premium on tax-exempt bonds would affect taxable interest. That baffles me but that is how other tax program that does have a template for 1099-OID handles my particular 1099-OID.

Many thanks.

Update:  If I do as instructed above and create new 1099-INT for the OID, TT Business Federal Review balks at having dollar amount in Box 13.  Review says Box 13 should be BLANK.

@ilg10402021 

See https://www.irs.gov/pub/irs-pdf/f1099oid.pdf

If there is an amount in both boxes 6 and 11, for a tax-exempt obligation that is a covered security acquired on or after January 1, 2017, and is issued with OID, the amount in box 6 shows the amount of acquisition premium amortization for the year that reduces the amount of your tax-exempt OID for the year. The payer may, but is not required to, report the acquisition premium for a tax-exempt obligation that is a covered security acquired before January 1, 2017, and issued with OID

I thank you for this info.  I had read same previously.  In my case, the amounts in Box 6 and Box 11 are the same...$63.00.

I do not understand the workaround.  Why would I enter the amount from Box 6 as interest in Box 1 of 1099-INT??  TT Business review will not allow amount in Box 1 and Box 13 of same 1099-INT.

How can acquisition premium for Tax-Exempt bonds affect taxable interest??  Other tax program that has template for 1099-OID deducts amount Box 6 from taxable interest amount.  All of this discussion would not be necessary if TTAX Business would provide a template for 1099-OID.

Is there an online version of TTAX Business, not that that would make any difference.

I have not tried to contact TTAX Business support.  I read online that such support is non-existent.

I think that is the correct treatment but, regardless, there is no online version of TurboTax Business yet. 

The rollout of TurboTax Business Full Service and Assisted is ongoing. 

No offense intended but how can the "workaround" be correct when TT Business' own Federal Review basically says, "You cannot do that."

Is there a way to talk to a real person regarding this issue???  I called support number and automated system emailed me meaningless link.  Is there a way to talk to a live person regarding TTAX Business??

Try the link below and say you are reporting a program issue.

How do I contact TurboTax? (intuit.com)

Thank you but no help there.  Automated response system sent useless links to me via email.  

I have been using TT desktop software for years and have never encountered such poor software or support.

In my opinion, the way to fix my issue is for TTAX Business to include a template for entering Form 1099-OID.  The workaround that has been provided is obviously not sufficient for my needs.  The software needs to be fixed. That's the bottom line.  Allow entry of 1099-OID directly, not a workaround.

I have always been happy with TTAX personal software but not this time around with TTAX Business desktop product.

I reviewed what CPA did for me for 2021.  Based on that review, I can say with a high degree of confidence that the workaround for 1099-OID for TT Business is wrong.   Based on what CPA did last year, Tax-Exempt OID (Box 11) is treated a tax-exempt interest and added to the amount of tax-exempt interest from 1099-INT Box 8.  As I stated above, that is what CPA did last year when doing my 1041 return.

I agree; Box 11 (1099-OID) should be added to the amount of tax-exempt interest reported on Box 8 (1099-INT).

On Box 11, I agree.  However, here is something interesting.  When I enter the 1099-OID in personal TurboTax, the amount in Box 11 does NOT transfer to total tax-exempt interest, which I find interesting.  Also, in personal TurboTax, the amount of Acquisition Premium (Box 6) does not transfer to anywhere that I can find.

Having said that, how do I handle Box 6 in TurboTax Business??  Ignore it??

Edit:  I figured this out.  A tax guy told me, "First, your acquisition premium reduces the tax exempt OID reported."  So, if the amount of Acquisition Premium and the amount of Tax-Exempt OID are the same, e.g. $63.00, then it's a wash when you report both boxes.  There is no tax impact.  If you enter a net amount of Tax-Exempt OID in Box 11, you leave Box 6, Acquisition Premium, blank.  If I enter $63 in Box 11 only, the $63 is added to tax-exempt interest total.  If I enter $63 in Boxes 6 and 11, it's a wash.

Turbotax needs to fix this, period.  There needs to be a template for 1099-OID in TT Business, period.  The posted workaround is not correct IMO.  I have read many negative reviews of TT Business.  Now, I know why.

Hi Hope,

Thank you for your reply.  Making these reporting adjustments for the trust OID has worked for many years but this year for 2023, after including the OID amount on line 11 Tax Exempt OID to the 1099 INT line 13 Bond Premium on Tax Exempt Bond, that amount is greater than Line 8, on the 1099 INT and I keep getting an error message.  What would be a work around to correct this so I can complete my tax return?  Of course it would be ideal if TT could upgrade the software and we could report these amounts where they are intended to be reported.

Thanks,

Kathy

You just need to click on forms and add it that way.  I've had to do that for years now. Hopefully TT will get an updated version that includes OID reporting.

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@kwelch0424 wrote:

You just need to click on forms and add it that way.  I've had to do that for years now. Hopefully TT will get an updated version that includes OID reporting.

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It has been that way for years and I would not hold my breath waiting for a change to be implemented.

After all, the program still has no import functionality (also requested for years) other than from QuickBooks.