Original Issue Discount (OID) is normally offered on some bonds and similar obligations in lieu of those bonds earning interest. OID is reported on Form 1099-OID and is to be reported as interest income to the taxpayer. To enter OID in TaxSlayer Pro, from the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- Interest or Dividends (Sch B, 8815) (NOTE: If you already have an amount on "Interest or Dividends less than $1500", you will not be able to enter an amount on this line. In this case, transfer the items from "less than $1500" to "Sch B, 8815")
- Form 1099-OID (Original Issue Discount)
- Enter the Payer’s Name
- Enter the amounts in Boxes 1, 2, 8, and 11 in the appropriate fields
- Select OK
- This will bring you to the full Schedule B - Form 1099-OID Edit Menu. Make any other entries as needed. Since there are several different scenarios that could necessitate the need for adjustments, we recommend reviewing Publication 1212 for more information.
Amounts will be reported on Line 2a of the 1040.
NOTE: This is a guide on entering Form 1099-OID into the TaxSlayer Pro program. This is not intended as tax advice. For additional information refer to the Additional Information below.