IRS Form 1099-OID Instructions
for 2023
Line by Line Form 1099-OID Instructions for 2023 Tax Year
Updated on October 16, 2023 - 15.00 AM by Admin, TaxBandits
Form 1099-OID reports a particular type of interest from certain debt instruments (bonds, notes, certificates of deposit ) that were issued at a lower price than what they can be redeemed
for at maturity.
Keep reading for a line-by-line overview of the Form 1099-OID instructions.
In this article, we cover the following topics:
1. Form 1099-OID Overview
Form 1099-OID is an IRS Tax Form used to report the amount of OID (Original Issue Discount) included in your taxable income of at least $10. Original Issue Discount refers to the debt instruments issued at a discount price less than that of the stated redemption price at the
time of maturity.
2. The Complete IRS Form 1099-OID Instructions for 2023
In total, IRS Form 1099-OID consists of 14 fields/boxes, and each section requires certain information to complete the reporting. Here is a breakdown of the information needed to complete Form 1099-OID.
Before getting into the more detailed information on Form 1099-OID, you will first enter the payer’s basic information.
Completing The Payer’s Information on Form 1099-OID
The following payer information is required:
- Payer’s Address (street address, city or town, state or province, country, and ZIP or foreign postal code).
- Payer’s TIN.
Completing The Recipient’s Information on Form 1099-OID
The following recipient information is required:
- Recipient's name
- Recipient's TIN
- Recipient’s Address (street address, city or town, state or province, country, and ZIP or foreign postal code)
- Account Number (Account number is required when the filer reports more than one Form 1099-OId and uses multiple accounts for the recipient.)
Completing Other Information on Form 1099-OID
From Box 1 to Box 14, the IRS requires the following information which is listed below.
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Box 1: Original Discount Amount For The Year
Enter the amount of OID that is allocated for the current tax year. This is the taxable income that should be reported on the recipient's tax return even though you don’t receive payment for it.
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Box 2: Other Periodic Interest
Enter the taxable interest that you actually paid during the year in box 2. Other periodic interest is the original interest paid on the debt instruments during the current year, excluding the OID amount.
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Box 3: Early Withdrawal Penalty
In box 3, enter the penalty taxpayers pay for early withdrawal before the maturity date.
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Box 4: Federal Income Tax Withheld
In box 4, enter the amount of federal income tax withheld from the amount paid including backup withholdings.
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Box 5: Market Discount
Enter the amount of market discount that was acquired on the debt instrument during the calendar year. This box is to report covered security acquired with OID and market discount.
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Box 6: Acquisition Premium
Enter the amount of Premium amortization for the year the debt instrument was owned by the investor/recipient.
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Box 7: Description
Enter the information about the debt instruments which includes CUSIP number, coupon rate, and year of maturity.
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Box 8: Original Issue Discount in U.S. Treasury Obligations
Enter the OID amount on U.S Treasury obligations for the year that the taxpayer owned it.
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Box 9: Investment Expenses
Enter the number of investment expenses taxpayer shares from a single class REMIC. Note these expenses are no longer deductible.
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Box 10: Bond Premium
Enter the bond premium amount for covered taxable securities.
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Box 11: Tax-exempt OID
Enter the amount of Tax-exempt interest on OID.
Only enter the tax-exempt OID amount that was acquired on or after January 1, 2017. You are not required to report tax-exempt OID acquired before January 1, 2017.
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Box 12-14:
This box is for payers filing for both federal and state programs. Enter the state withholding information related to the Income which includes the State ID number, state abbreviation, and amount of tax withheld.
3. Advantages of E-Filing Form 1099-OID with TaxBandits
Filing Form 1099-OID with TaxBandits has many great benefits.
Easy filling and Instant filing Status
With TaxBandits, You can effortlessly file Form 1009-OID and get Instant approval From IRS.
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Advanced Data Validation
TaxBandits helps you e-file accurate forms. Our built-in error checks prevent common errors using the IRS Business Rules.
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Stay up to Date with Latest Form Changes
With TaxBandits, you can easily stay up-to-date with the latest IRS changes to Form 1099-OID.
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Post Mailing and Online Access
TaxBandits offers solutions for recipient copies with postal mailing services and online access for recipients to view and download their forms.
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Affordable Pricing
Avoid overspending on your IRS filing, with TaxBandits you can begin filing Form 1099-OID for as little as $0.80/form.
4. How to E-file Form 1099-OID With TaxBandits?
Filing Form 1099-OID has never been easier! The application is cloud-based, meaning there is no need to purchase and download any costly software to file. The process of filing with TaxBandits is simple and straightforward.
Follow the steps below to get started filing Form 1099-OID with TaxBandits.
- Step 1: Create a free TaxBandits account
- Step 2: Enter the necessary information on Form 1099-OID
- Step 3: Review and transmit the form to the IRS
Get started with TaxBandits today. E-file Form 1099-OID in minutes and get instant updates about the filing status.
Helpful Resources for Form 1099-OID
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