How do I enter 1099-OID entries in a 1040 return in ATX™?
For most 1099-OID entries, use the 1099-INT worksheet and follow the instructions for 1099-OID.
- Box 1 - Original issue discount for use Box 1 - Interest income of 1099-INT worksheet.
- Box 2 - Other periodic interest See the instructions on Form 1099-OID.
- If you held the obligation the entire year, report this amount as interest income on your tax return. Enter on 1099-INT worksheet, Box 1 - Interest income.
- 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. Enter on 1099-INT worksheet, Box 3b - Interest on Treasury obligations.
- If you disposed of the obligation or acquired it from another holder during the year, see IRS Pub. 550 for reporting instructions.
- Box 3 - Early withdrawal penalty use Form 1040, Line 30 - Penalty on early withdrawal of savings.
- Box 5 - Market discount use Form 1040, Line 8a - Taxable interest.
- Box 6 - Acquisition premium see the instructions on Form 1099-OID and IRS Pub. 550.
- Box 8 - Original issue discount on U.S. Treasury obligations see the instructions on Form 1099-OID.
- Box 9 - Investment expenses use Schedule A, Line 23 - Other expenses - investment, safe deposit box, etc. List type and amount.
Solution Id | 000201964/How-do-I-enter-1099-OID-entries-in-a-1040-return-in-ATX |
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