I need to do a positive adjustment / increase on OID from the value on a 1099 OID.
In previous years when I made the adjustment ("I need to adjust these amounts") using a negative number it would be added as a positive number into the column for the year in the "Income Summary" page for line "1099-OID, Foreign Accounts", and show up as a special line called "OID Adjustment" on the Schedule B form, and added to the interest line 1040 line 2b.
When I do the same in TurboTax 2021, nothing seems to happen.
Is this a bug introduced into the 2021 version?
It seems user lwehnes might have a similar problem:
https://ttlc.intuit.com/community/taxes/discussion/re-oid-adjustment/01/2025248
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After some playing around, it appears that the adjustment is ignored if all values on the 1099-OID are 0 or empty. Setting to them to a single penny causes the adjustment to be used.
To recap, the issue is caused by having a value of 0 or blank for all the boxes on the 1098-OID. I see a few options to solve this:
1) Set box 1 to a penny, and offset the adjustment by a penny.
2) Set box 1 to the adjusted value, positive value (since this is an increase in OID).
3) Add a new fictional 1098-OID with box 1 set to the adjustment amount, and the Payee set to "OID Adjustment".
I don't like 1 and 2 because it isn't an accurate reflection of what the broker reported. Instead I opted for #3, which ends up looking pretty similar on the return - the difference is that the line for the adjustment doesn't show up after the subtotal on Schedule B, but it still is labeled as "OID Adjustment".
I suspect that this is mainly an issue for adjustments that increase OID, and #3 seems to work well for that case.
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