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Electronic filing (E-FILE) of tax Form 1099-OID via IRS FIRE is included for free. 1099-OID forms are easily maintained on user friendly windows resembling the actual IRS Form (as shown above).
Form 1099-OID: Original Issue Discount, is the IRS form that you received if you must include an amount of OID in your taxable income. Original Issue Discount refers to the excess of an obligations stated redemption price at maturity over its issue price, and it is taxable as interest over the life of the obligation.
Box 1 Original Discount Amount (OID) is taxable interest. OID accrues over the life of the underlying bond irrespective of the receipt of any payments from the issuer during that time. The amount reported in Box 1 is the amount of the OID that is allocated to the current tax year.
What is Original Issue Discount (OID) Form 1099-OID is used to report a special type of interest from certain bonds that were issued at a price less than the value you can redeem them for once the bond matures.
How do I enter 1099-OID entries in a 1040 return in ATX? If you held the obligation the entire year, report this amount as interest income on your tax return. If there is an amount in both boxes 2 and 8, the amount in box 2 is interest on a U.S. Treasury obligation and is exempt from state and local income taxes.
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File Form 1099-OID: If the original issue discount (OID) includible in gross income is at least $10. For any person for whom you withheld and paid any foreign tax on OID. From whom you withheld (and did not refund) any federal income tax under the backup withholding rules even if the amount of the OID is less than $10.
In general, your tax-exempt stated interest should be shown in box 8 of Form 1099-INT or, for a tax-exempt OID bond, in box 2 of Form 1099-OID, and your tax-exempt OID should be shown in box 11 of Form 1099-OID. Enter the total on line 2a of your Form 1040 or 1040-SR.
In general, to determine your gain or loss on a tax-exempt bond, figure your basis in the bond by adding to your cost the OID you would have included in income if the bond had been taxable. For a covered security, your broker will report the adjusted basis of the debt instrument to you on Form 1099-B.
If you have OID interest that must be reported as income, the holder of the debt instrument should send you a copy of Form 1099-OID. If you havent received a 1099-OID and believe you should have, contact your holder.
Like other 1099 forms, it is normally filled out by a payer of income for example, the issuer or seller of a discounted bond and sent both to tax authorities and the recipient of the income.

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