[{"data":1,"prerenderedAt":7},["ShallowReactive",2],{"faq-standard-3026":3},{"rec_id":4,"title":5,"text":6},"3026","Original Issue Discount (Form 1099-OID)","Menu Path: \u003Ci>Income > Uncommon Income > Original Issue Discount (1099-OID)\u003C/i>\r\n\u003Cbr>\u003Cbr>\r\nOriginal issue discount (OID) income is a form of taxable interest income. You are usually issued a \u003Ci>Form 1099-OID\u003C/i> that shows the amount of OID that needs to be reported as interest income on your tax return. OID happens when you have purchased a bond, note, or other long-term debt instrument for a lower price than its face value. \r\n\u003Cbr>\u003Cbr>\r\n\u003Cb>For example:\u003C/b> If you purchased a bond with a face value of $1,000 for $800, then you have $200 of OID that needs to be recognized over the remaining life of the bond. If the bond had 5 more years before its maturity date when you purchased the bond, then you would recognize $40 in OID as interest income on each of your tax returns over the next five years. The $40 should be shown on a \u003Ci>Form 1099-OID\u003C/i> that you can enter on the \u003Ci>Original Issue Discount (Form 1099-OID)\u003C/i> screen.",1777391508316]