Where to enter OID forms?

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.

 

Here's how to enter your 1099-OID in TurboTax:

1. Open or continue your return and then search for this exact phrase (we recommend you copy/paste from here): 1099-oid original issue discount
2. Select the Jump to link at the top of your search results.
3. On the Miscellaneous Investment Income screen, check the first box for Form 1099-OID and Continue.
4. Answer Yes on the next screen, and continue to follow the onscreen instructions to import or manually enter your 1099-OID.
5. If you land on the Form 1099-OID Summary screen, select Add Another Payer, and then follow the instructions to import or manually enter.

If the interest on the OID form is for U.S. Treasury Notes, is it taxable?

Yes, it is taxable on your federal return, however Treasury bond. interest is exempt from state and local income taxes.

 

If you have exempt interest dividends on your Form 1099-DIV or Form 1099-OID, then some of those dividends are likely not taxable to your state.  You need to know form your broker what that percentage is.  Once you have the percentage you can enter that amount so that TurboTax can carry that information and keep that amount tax free to your home state return.

 

See an example below where a 1099-OID has a Tax Exempt OID in Box 11 and the screen that follows to allow your entry for your resident state. There will be similar screens for 1099-DIV.  If you imported you can select the correct item to edit.

 

Be sure to check the box 'I earned tax exempt OID in more than one state'. See the image below.

 

@cheyrllbarbaria

1. Sign into TurboTax > Wages & Income > Interest and Dividends > 1099-OID, Foreign Account > Start