Taxpayers who receive Form 1099-OID, Original Issue Discount, should report the amounts shown on the form on their tax return. Report:
Investment expenses is covered in the Itemized Deductions lesson, and entries for foreign tax paid and foreign country is covered in the Foreign Tax Credit lesson.
If taxpayers indicate there are adjustments needed for any of the amounts listed on Form 1099-OID, or if they have income from original issue discount, but did not receive Form 1099-OID, refer them to a professional tax preparer to ensure the correct amount is reported.
Refer to the Volunteer Resource Guide, Income tab, for instructions on entering interest income in the Interest Statement. Regardless of the amount, when entering interest income, use the Interest Statement as shown in the Volunteer Resource Guide. The software will file Schedule B if required.