Fillable Form 1099-Oid - Original Issue Discount

Instructions for Recipient

type of debt instrument, the issue or acquisition date, and other factors (for example, if you

paid acquisition or bond premium, or the obligation is a stripped bond or coupon), you may

Original issue discount (OID) is the excess of an obligation’s stated redemption price at

have to figure the correct amount of OID to report on your return. See Pub. 1212, Guide to

maturity over its issue price (acquisition price for a stripped bond or coupon). OID is taxable

Original Issue Discount (OID) Instruments, for details on how to figure the correct OID.

as interest over the life of the obligation. If you are the holder of an OID obligation, generally

Box 2. Shows other interest on this obligation for the year, which is an amount separate from

you must include an amount of OID in your gross income each year you hold the obligation.

the OID. If you held the obligation the entire year, report this amount as interest income on

Obligations that may have OID include a bond, debenture, note, certificate, or other evidence

your tax return. If you disposed of the obligation or acquired it from another holder during the

of indebtedness having a term of more than 1 year. For example, the OID rules may apply to

year, see Pub. 550 for reporting instructions. If there is an amount in both boxes 2 and 6, the

certificates of deposit (CDs), time deposits, bonus savings plans, and other deposit

amount in box 2 is interest on a U.S. Treasury obligation and is exempt from state and local

arrangements, especially if the payment of interest is deferred until maturity. In addition, the

income taxes.

OID rules apply to Treasury inflation-protected securities. See Pub. 550, Investment Income

Box 3. Shows interest or principal forfeited if you withdrew the money before the maturity

and Expenses, for more information.

date of the obligation, such as from a CD. You may deduct this amount to figure your

If, as the record holder, you receive Form 1099-OID showing amounts belonging to another

adjusted gross income on your income tax return. See the instructions for Form 1040 to see

person, you are considered a nominee recipient. Complete a Form 1099-OID for each of the

where to take the deduction.

other owners showing the amounts allocable to each. File Copy A of the form with the IRS.

Box 4. Shows backup withholding. Generally, a payer must backup withhold if you did not

Furnish Copy B to each owner. List yourself as the “payer” and the other owner as the

furnish your taxpayer identification number (TIN) or you did not furnish the correct TIN to the

“recipient.” File Form(s) 1099-OID with Form 1096, Annual Summary and Transmittal of U.S.

payer. See Form W-9, Request for Taxpayer Identification Number and Certification, for

Information Returns, with the Internal Revenue Service Center for your area. On Form 1096,

information on backup withholding. Include this amount on your income tax return as tax

list yourself as the “filer.” A husband or wife is not required to file a nominee return to show

withheld.

amounts owned by the other. If you bought or sold an obligation during the year and you are

Box 5. Shows the identification (CUSIP) number or description of the obligation (may include

not a nominee, you are not required to issue or file Form 1099-OID showing the OID or stated

the stock exchange, issuer, coupon rate, and year of maturity).

interest allocable to the seller/buyer of the obligation.

Box 6. Shows OID on a U.S. Treasury obligation for the part of the year you owned it. Report

Recipient's identification number. For your protection, this form may show only the last four

this amount as interest income on your federal income tax return, and see Pub. 1212 to figure

digits of your social security number (SSN), individual taxpayer identification number (ITIN), or

any appropriate adjustments to this amount. This OID is exempt from state and local income

adoption taxpayer identification number (ATIN). However, the issuer has reported your complete

taxes and is not included in box 1.

identification number to the IRS and, where applicable, to state and/or local governments.

Box 7. Any amount shown is your share of investment expenses of a single-class REMIC. If

Account number. May show an account or other unique number the payer assigned to

you file Form 1040, you may deduct these expenses on the “Other expenses” line of

distinguish your account.

Schedule A (Form 1040) subject to the 2% limit. This amount is included in box 2.

Box 1. Shows the OID on the obligation for the part of the year you owned it. Report the

Box 8—10. State income tax withheld reporting.

amount in box 1 as interest income on your income tax return. However, depending on the

Form 1099-Oid - Original Issue Discount - 2012 Page 4

Related Articles

Related forms

Related Categories