What is Form 1099-OID?
Form 1099-OID, Original Issue Discount, is used by taxpayers in the United States to report the total daily portions of their original issue discount (OID) for a holder that is at least $10. You may file this form if you meet the following qualifications:
- An issuer with any bond outstanding or other evidence of indebtedness in registered or bearer form issued with OID
- An issuer of a certificate of deposit (CD) made, purchased, or renewed after 1970 if the CD has OID and a term of more than 1 year
- A financial institution having other deposit arrangements, such as time deposits or bonus-savings plans, if the arrangements have OID and a term of more than 1 year
- A broker or other middleman holding an OID obligation, including CDs, as nominee for the actual owner
- A trustee or middleman of a widely held fixed investment trust (WHFIT) or widely held mortgage trust (WHMT)
- A real estate mortgage investment conduit (REMIC), a holder of an ownership interest in a financial asset securitization investment trust (FASIT), or an issuer of a collateralized debt obligation (CDO)
How to fill out Form 1099-OID?
U.S. taxpayers can download and print a PDF copy of IRS Form 1099-OID from the Internal Revenue Service (IRS) website that they can manually complete. They can also fill out IRS Form 1099-OID electronically on PDFRun.
The 1099 OID Tax Form has several copies. The following instructions below are applicable to all the copies:
- Copy A - For Internal Revenue Service Center
- This copy must be filed along with Form 1096, Annual Summary and Transmittal of U.S. Information Returns.
- Copy 1 - For State Tax Department
- Copy B - For Recipient
- Copy 2 - To be filed with the recipient’s state income tax return when required
- Copy C - For Payer
To fill out the 1099 OID Tax Form, you must provide the following information:
Enter your full legal name.
Payer’s Street Address
Enter your street address including your apartment number.
Payer’s City or Town
Enter your city or town.
Payer’s State or Province
Enter your state or province.
Enter your country.
Payer’s ZIP Code or Foreign Postal Code
Enter your ZIP code or foreign postal code.
Payer’s Telephone Number
Enter your telephone number.
Payer’s Tax Identification Number (TIN)
Enter your tax identification number (TIN).
Recipient’s Tax Identification Number (TIN)
Have your recipient enter his or her tax identification number (TIN).
Have your recipient enter his or her full legal name.
Recipient’s Street Address
Have your recipient enter his or her street address including his or her apartment number.
Recipient’s City or Town
Have your recipient enter his or her city or town.
Recipient’s State or Province
Have your recipient enter his or her state or province.
Have your recipient enter his or her country.
Recipient’s ZIP Code or Foreign Postal Code
Have your recipient enter his or her ZIP code or foreign postal code.
Recipient’s Telephone Number
Have your recipient enter his or her telephone number.
Recipient’s Account Number
Have your recipient enter his or her account number.
Foreign Account Tax Compliance Act (FATCA) Filing Requirement
Mark this box if you are a Foreign Financial Institution (FFI) reporting payments to a United States account in accordance with an election. Additionally, you must also mark this box if you are a payer in the United States that is reporting on this form as part of fulfilling your reporting requirements.
Enter the current calendar year.
Line 1. Original issue discount for the year
Enter the total amount of taxable original issue discount (OID) on the obligation for the part of the year it was owned by the record holder. You are not required to include the amount reported in box 8.
Line 2. Other periodic interest
Enter any qualified stated interest paid or credited on this obligation during the year. However, you may also report any qualified stated interest on Treasury Inflation Protected Securities in box 3 of Form 1099-INT, Interest Income. Interest reported here on Form 1099-OID must not be reported on Form 1099-INT.
Line 3. Early withdrawal penalty
Enter any interest or principal that has been forfeited because of an early withdrawal of time deposits in U.S. dollars. You may enter early withdrawal amounts that are deductible from gross income by the recipient. You must not reduce the amounts in boxes 1 and 2 by the amount of the forfeiture.
Line 4. Federal income tax withheld
Enter the federal income tax that has been withheld in U.S. dollars. If a recipient does not furnish his or her tax identification number (TIN) to you in the manner required, you must back up withholding.
Line 5. Market discount
Enter the amount of market discount that accrued on the debt instrument during the tax year in the amount of $10 or more if you were notified that a section 1278(b) election was made for covered security acquired with market discount and original issue discount (OID).
Line 6. Acquisition premium
Enter the amount of premium amortization for the part of the year the debt instrument was owned by the holder for a covered security acquired with acquisition premium. You may, but are not required to, report the acquisition premium for a tax-exempt obligation that is a covered security.
Line 7. Description
Enter your Committee on Uniform Securities Identification Procedures (CUSIP) number, if it is applicable. If you do not have a CUSIP number, enter the abbreviation for the stock exchange, the abbreviation for the issuer used by the stock exchange, the coupon rate, and the year of maturity. If you are not the issuer of the obligation, enter the full legal name of the issuer.
Line 8. Original issue discount on the United States treasury
Enter the original issue discount (OID) on a U.S. Treasury obligation for the part of the year it was owned by the record holder. Do not include this amount in box 1. You may enter any qualified stated interest on the Treasury obligation in box 2. The amount in box 8 may be a negative number.
Line 9. Investment expenses
Enter the total amount of your investment expenses.
Line 10. Bond premium
Enter the amount of bond premium amortization allocable to the interest paid during the tax year for a taxable covered security acquired at a premium unless you were notified in writing that the holder did not want to amortize the bond premium.
Line 11. Tax-exempt original issue discount (OID)
Enter the original issue discount (OID) for the part of the year it was owned by the record holder for a tax-exempt obligation that is a covered security that has been acquired.
Line 12. State
Enter the name of your current state.
Line 13. State identification number (SIN)
Enter your state identification number (SIN).
Line 14. State tax withheld
Enter the total amount of your state tax withheld.