If using IRS 1099-INT, do the following:

1. Go to Federal Interview Form IRS 1099-INT - Interest Income.
   • In Boxes 40-48 - Payer's name and address, enter the payer's information.
   • In Box 71 - (1) Interest income, enter the interest income.
   • In Box 102 - Special Interest Amount, enter the OID adjustment amount.
   • In Box 103 - Special Interest Code, enter 6 - Original Issue Discount (OID) adjustment.
2. Calculate the return.

If using a Consolidated 1099, do the following:

1. Go to Federal Interview Forms Cons 1099 - Consolidated 1099.
2. Open Interview Form CN-1 - Consolidated 1099 - General and Interest.
   • In Boxes 30-56 - General Information, enter the 1099's general information.
3. Open Interview Form CN-3 - Interest Income.
   • In Box 30 - Source, enter the description for interest income.
   • In Box 31 - Savings/Loans/Bank and Other, enter the interest income.
   • In Box 40 - Special Interest Amount, enter the OID adjustment amount.
   • In Box 41 - Special Interest Code, enter 5 - Original Issue Discount (OID) adjustment.
4. Calculate the return.

Additional Information

To show the OID on the Schedule B as Tax Exempt interest and then back it out, do the following:
If using IRS 1099-INT:

1. Go to Federal Interview Form IRS 1099-INT - Interest Income.
   • In Box 86 - Other Periodic Interest (OID), enter the amount.
   • In Box 106 - X if tax-exempt OID, enter X.
2. Calculate the return.

If using a Consolidated 1099:

1. Go to Federal Interview Forms Cons 1099 - Consolidated 1099.
2. Open Interview Form CN-1 - Consolidated 1099 - General and Interest.
   • In Boxes 30-56 - General Information, enter the 1099's general information.
3. Open Interview Form CN-3 - Interest Income.
   • In Box 71 - X if tax-exempt OID, enter X.
   • In Box 72 - Other periodic interest, enter the amount.
4. Calculate the return.