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Form 1099 - OID

What is Form 1099-OID?

Form 1099-OID, if the user’s bond or Certificate of Deposit (CDs) have reached maturity, the user may need to file tax Form 1099-OID. The user must prepare a Form 1099-OID for each person who is a holder of the records of the obligation if the total daily portions of OID for that person is at least $10. Ordinarily, the user will file only one Form 1099-OID for the depositor or holder of a particular obligation for the calendar year. The taxpayer captures the discount as income over the life of the instrument rather than waiting until it is sold.

Original Issue Discount (OID), refers to the excess of the declared purchase price of a bond at maturity over its issue price, and Its taxable interest over the term of the bond. The OID is the difference between the stated redemption price at maturity and the issue price. Obligations generally exist for holdings issued after 1984. Those may have OID that include a bond, debenture, note, certificate, or other proof of indebtedness having a term of more than one year.

Note: If the due date/deadline comes on a weekend, or a federal holiday, you will need to E-file on the next business day.

1099-OID Form

1099-OID Form

Now that you know about the 1099-OID Form, you can work with a great tax advisor or preparer to get the most accurate tax reporting and get the most out of your return here at Tax2efile!