TurboTax FAQ
TurboTax FAQ
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What is Form 1099-OID?

You'll get Form 1099-OID (Original Issue Discount) when you purchase a bond or note for an amount less than face value. The OID is the difference between the bond's stated redemption price (usually its face value) and its issue price (generally the amount the bond or note was first sold by the issuer).

The OID 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 the interest.

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