Still having problems with the 1099-B and 1099-OID

This year form 1099-B (Gross Proceeds (covered and Noncovered transactions) $320,000.00

(Cost or other basis (Covered transactions only) $311,506.00

Market discount sale $8,494.00

Form 1099-OID box * OID on U.S. treasury Obligations $1,585.04

Do I enter both the 1099-B info to generate form 8949 and also the 1099- OID info amounts into the program.

Thank you

1694

Expert Alumni

Feb 3, 2025 8:03:33 AM

Yes, enter both forms. The 1099-OID is reporting the discount you received when the bond was purchased. 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.

1099-B is received when the bond is redeemed and the OID that has been reported as income over the holding period time frame is the cost basis for this capital gain transaction. This transaction is both federal and state taxable.
1099-INT is the interest earned on the US Treasury bond and is taxable on your federal return, not on the state return.
Click the link below for each form you need to enter.
- Where do I enter 1099-OID?
- Where do I enter 1099-B? (May generate the 8949 form based on your entry)
- Where do I enter 1099-INT?

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Still having problems with the 1099-B and 1099-OID