Where enter 1099-oid in Business TurboTax? There is no line item in pgm and the box nos do not comport with line items for 1099-int.

[DianeW777]

The appropriate way in TurboTax Business program to report Form 1099-OID (or frequently the OID for tax-exempt is not reported on a separate Form 1099-OID) is make entries as if two separate Form 1099-INT were received, as this software does not have a separate interview entry for OID.

Original Interest Discount  (OID) occurs when a firm issues an instrument of indebtedness (bond/note) at a price below its maturity price so that holding the investment to maturity yields an otherwise unreported increase in interest income.  Further, since a note or bond can be traded/sold in the secondary market,  the tax accounting calls for the value of that amount of "excess-redemption value" to be recognized yearly as if the holder had actually received an interest payment in that amount.  At redemption there should be zero gain or loss.

@stevepaa

[RenderUntoCaesar]

How do we know how to map the 1099-OID boxes back to the 1099-INT format that TurboTax insists we use?  For example, income in box 2 of the OID should be entered in what box on the 1099-INT?

[RenderUntoCaesar]

I think I found the answer elsewhere in this long thread.  For the benefit of those who might read this later:

Report the following items from the 1099-OID:

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

[kulumao]

There are no jump to link after the search results.

Also why would box 8 on oid (oid on us treasury obligation) be enter into 1099-int box 12 which is bond premium on us obligation?

[DianeW777]

Here is a review of both statements and how to report. 

IRS Schedule B Instructions: Taxable interest generally should be shown on your Forms 1099-INT, Forms 1099-OID, or substitute statements. 

The amount from Form 1099-OID listed in Box 8 would be entered in the 1099-INT in Box 3 (not Box 12). 

• 1099-INT: Box 3. Shows interest on U.S. Savings Bonds, Treasury bills, Treasury bonds, and Treasury notes. This may or may not all be taxable
• 1099-OID: Box 8. Shows OID on a U.S. Treasury obligation for the part of the year you owned it. 

@kulumao 

[ivancillo]

Hi,

I'm having the exact same problem in turbotax business because turbotax still doesn't include 1099OID. My 1099-OID has a box 8 with amount. In the instructions before 2019 it seems you entered this in box 12, but now it is entered in box 3?

Thanks

[JohnW152]

No.  In TurboTax Business, you can actually enter Form 1099-OID, including an amount from Box 8.

To enter Form 1099-OID information into TurboTax Business:

1. Select Federal Taxes in the top ribbon
2. Select Wages & Income
3. On the How do you want to enter your income? screen, select I'll choose what I work on
4. On the Your 2022 Income Summary page, scroll down to Interest and Dividends, and select Start to the right of 1099-OID, Foreign Accounts
5. On the Miscellaneous Investment Income screen, select the checkbox to the left of Form 1099-OID for original issue discount income, then select Continue
6. Select Yes on the Any OID for 2022? screen
7. Select I'll type it in myself, then Continue on the Let Us Enter Your 1099-OID screen
8. On the Original Issue Discount screen, enter all appropriate amounts, then select Continue
9. Complete the 1099-OID portion of the interview

@ivancillo 

[ivancillo]

Thanks,

Unfortunately, the wages and income doesn't show up in the trust form. I believe it must then be available for businesses using tt business but not for trusts. Is there a way around this problem? the only box I have on my 1099 OID is 8.

Thanks again,

Ivan

[JohnW152]

If you're talking about a trust return, then you can just enter the box 8 Original issue discount on U.S. Treasury obligations as normal interest on line 1 of Form 1041. 

Please see Line 1—Interest Income in the Instructions for Form 1041 and Schedules A, B, G, J, and K-1 for more information.

The box 8 OID is exempt from state and local income taxes, and isn't included in box 1 of Form 1099-OID.  However, it must be reported on the federal income tax return.  See Box 8 in the Instructions for Recipient on the back of Form 1099-OID. 

See also Publication 1212, Guide to Original Issue Discount (OID) Instruments for information on any adjustments that may need to be made to the box 8 amount.

@ivancillo 

[ivancillo]

Line 1 in the 1041 of a trust is comprised of the sum of 1099s, so it seems in TurboTax business it must be a 1099 INT. Box 8 of the 1099-OID becomes box 3 on the 1099-INT? Is this the correct way of reporting?

[HopeS]

I am assuming you are asking how to enter  Form 1099INT Box 8.

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 US Treasury Interest.
6. Box 4 (Fed tax withheld) -- Box 4 of 1099-INT
7. Box 5 (Investment Expense)
8. Box 6 Foreign Tax Paid
9. Box 8 Tax Exempt Interest
10. Box 9 - Specified Private Activity Bond
11. Box 10 Market Discount
12.  Then Check the box in the screenshot below to get to the page to enter the Bond Premium amount in Box 11.

@ivancillo 

[ivancillo]

Hi @HopeS ,

In the trust's 1099-OID the only box that has a value is Box 8 (Original Issue Discount on U.S. Treasury Obligations), my question is where on the 1099 INT should that be entered?

Thanks,

Ivan

[HopeS]

Please clarify your question. You are asking where on Form 1099INT would Box 8 be entered.

On Form 1099INT,  Box 8 -shows the original issue discount on U.S. Treasury obligations. This represents taxable interest on the federal income tax level but is typically tax-exempt interest for state and local income taxes.

See below, there is a box 8 in the Interest & Dividend section of the TurboTax Business interview.

Also, see the additional link below for more information on OID.

Original Issue Discount

@ivancillo