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Level 3
posted Jun 1, 2019 2:16:04 PM

My 1099-OID shows $1,900 in box 8 (Treasury OID) and $2,200 in box 10 (Bond Premium). TurboTax is triggering an error (Premium > Interest). How to work around?

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6 Replies
New Member
Jun 1, 2019 2:16:06 PM

Split it into 2 separate  forms, one with the OID and one with the Premium

Level 3
Jun 1, 2019 2:16:07 PM

The one with Premium has zero instead of $1,900 and generates the same error.

New Member
Jun 1, 2019 2:16:08 PM

Try putting the same amounnt as the OID in Box 11, so Box 8 and 11 are equal

Level 3
Jun 1, 2019 2:16:08 PM

The error compares Box 10 to Box 2 so these fixes don't work.  I gave up and entered Bond Premium into a 1099-INT.

Level 2
Feb 14, 2020 5:21:34 PM

I think there is a problem with TT. It doesn't seem to handle 1099-OIDs correctly. I have a 1099-OID from some tax exempt bonds with APB on line 10. The interest on these bonds are included in 1099-INT with interest from other tax exempt bonds that are not OID. TT is just ignoring the APB on 1099-OID causing extra state tax on the interest equal to APB amount on 1099-OID. It looks like I have to add the APB on 1099-OID to the APB on 1099-INT in order pay the correct tax amount to my state. I guess I will do what you have done and ADD the APB on 1099-OID line 10 to the line 13 in 1099-INT. I will let Uncle Sam to figure it out if it not the right way to handle it.

New Member
Feb 20, 2024 4:23:09 PM

this fix will work as long as the 1099-int has at least as much us treasury interest income (box  3) as the bond premium.

in that case, enter the premium in box 12, which will reduce the taxable interest.  i also added an explanatory statement.  the other alternative, if you itemize, is to enter the premium on schedule A under "other expenses" & add something like "bond premium on treasuries" as a descriptor.   i suppose you could also report the oid in box 2 of the oid form rather than box 8.