What is an IRS Form 1099-OID?

Form 1099-OID is an IRS Tax Form used to report the Original Issue Discount (OID) on certain debt instruments such as bonds, notes, or certificates of deposit, which are sold at a discount value less than that of the redemption price at the time of maturity.

OID is the difference between the face value of the debt instruments and the price that the investor paid at the time it was issued. When the debt instrument is redeemed at the maturity date, the face value of the instrument will be paid to the investor.

Who must File Form 1099-OID?

Usually, IRS Form 1099-OID is filed by the brokerage company that holds the debt instruments for the investors. You will receive Form 1099-OID

  • If the OID included in your gross income is at least $10.
  • If the holder of debt instruments withheld and paid foreign tax on OID.
  • If the holder of debt instruments withheld tax under the backup withholding rule.

What Information is Required When Filing IRS Form 1099-OID?

The following information is required to be reported, when filing IRS Form 1099-OID Online:

  • 1. Payer Details: Name, TIN, and Address
  • 2. Recipient Details: Name, TIN/Social Security, and Address
  • 3. Federal Details: Original Issue Discount and Federal Tax Withheld
  • 4. State Filing Details: State Income, Payer State Number, and State Tax Withheld Know more about Form 1099-OID Instructions.

When is the Deadline to file Form 1099-OID for the 2022 Tax Year?

Form 1099-OID Due date form tax year 2022 is listed as follows:

  • The recipient's copies should be distributed on or before January 31st, 2023.
  • Paper copies of Form 1099-OID should be reported to the IRS on or before February 28th, 2023.
  • Electronic copies of Form 1099-OID should be reported to the IRS on or before March 31st, 2023.

Completing Form 1099-OID

The following steps are needed to complete the Form 1099-OID Online:

  • Box 1: Original Discount Amount For The Year
  • Box 2: Other Periodic Interest
  • Box 3: Early Withdrawal Penalty
  • Box 4: Federal Income Tax Withheld
  • Box 5: Market Discount
  • Box 6: Acquisition Premium
  • Box 7: Description
  • Box 8: Original Issue Discount in U.S. Treasury Obligations
  • Box 9: Investment Expenses
  • Box 10: Bond Premium
  • Box 11: Tax-exempt OID
  • Box 12-14: State withholding tax information

Learn more about Form 1099-OID Instructions.

How to File Your IRS 1099-OID Forms?

Form 1099-OID Paper Filing:

The IRS accepts paper copies of Form 1099-OID. You can download the version of Form 1099-OID from the IRS's official website. If you are filling out more than 250 copies, it is required to e-file. Note that paper copies are prone to errors and might take more time for approval.

Form 1099-OID E-filing:

You can File Form 1099-OID online. Generally, the IRS prefers e-filing over paper copies because e-files are safe, secure, and easy to report. If you are looking to file Form 1099-OID for the tax year 2022, get started with ExpressIRSForms today, one of the leading e-file providers.

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