, Answering FAQ'sTurboTax Employee
What is Form 1099-OID?
You are issued a Form 1099-OID when you have purchased a bond or note for an amount that is less than face value. An OID (Original Issue Discount) is the excess of a bond or note's stated redemption price over its issue price. The stated redemption price is usually the face value of the bond or note (say $10,000). The issue price is generally the amount at which the bond or note was first sold by the issuer (say $9,500).
The profit you make on the purchase ($500 in our example) is the OID and is taxable interest income for you over the life of the bond. You must include a part of the OID as interest income each year you hold the bond - even if you don't actually receive any interest until the bond matures. You'll be issued a Form 1099-OID to document your OID interest.
Entering Form 1099-OID into TurboTax
When you use TurboTax, we will ask you about an form 1099's you have received, including form 1099-OID. We then will enter the information on the correct schedule and perform all the calculations for you.
If you've already gone through the step-by-step interview and want to jump directly to the entry screen for this topic, follow these directions.
- Select Federal Taxes (Personal in the Home & Business edition).
In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
- Select the Wages & Income, and in the new screen, click Explore on My Own.
- Scroll down the Your Income Summary screen until you see the Interest and Dividends group.
- Click on the Start/Update button next to the 1099-OID, Foreign Accounts category.
- Follow the prompts.
What if I received two or more 1099-OIDs?
After you have entered in your first 1099-OID, you will be given the option to add more forms. Simply click on the Add Another Payer button, and we'll walk you through step-by-step adding all your 1099-OIDs.
You may be able to download financial reporting forms, refer to importing your W-2, 1099 and 1098 Forms.
If you need to correct or change any information you have entered from your 1099-OID, the steps you take depends on if you have already filed your tax return.
- If you have yet to file your return, simply follow the navigation instructions above, and correct or change your information.
- If you have already filed your return and it was accepted by the IRS, you will need to amend your return. Refer to How to Amend a Return You Already Filed.
For questions about printing, refer to print a copy of your tax return.