Where do I enter Form 1099-OID?
When you purchase a bond or note at a discount (less than its face value), 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:
- Open (continue) your return if it's not already open.
- Inside TurboTax, search for this exact phrase (don't forget the dash; we recommend you copy/paste from here): 1099-oid original issue discount
- Click or tap the "Jump to" link in the search results.
- Answer Yes to Any OID for 2016?
- If you land on the Form 1099-OID Summary screen, click or tap Add Another Payer.
- On the following screen, choose whether to import the form or type it in yourself.
- Follow the onscreen instructions.
To remove an unwanted 1099-OID, follow Steps 1-3. When you get to Step 4, you'll be on the Form 1099-OID Summary screen. Click or tap Delete next to the unwanted form, then Yes on the confirmation screen.