Forms 1099-INT and 1099-OID: Interest Income And Original Issue Discount

The Internal Revenue Service (IRS) uses Forms 1099-INT and 1099-OID to report interest income received by taxpayers. Here's a breakdown of each:

A. Form 1099-INT (Interest Income): This form reports interest income of $10 or more accrued to a taxpayer during the year. Examples include:

  1. Interest from savings accounts, certificates of deposit (CDs)
  2. Interest on U.S. Savings Bonds (Series I and EE)
  3. Interest from money market accounts

B. Form 1099-OID (Original Issue Discount): This form reports a specific type of interest income from certain bonds. It applies when a bond is issued at a discount (purchased for less than its maturity value). The difference between the purchase price and the maturity value is considered taxable income, even though it's not received as cash payment.

Who receives these forms?

You will receive a Form 1099-INT or 1099-OID from any financial institution that paid you interest of $10 or more during the tax year. This includes banks, brokerage firms, mutual funds, and other entities that hold your investments.

Who files these forms?

Financial institutions and other payers are responsible for filing Forms 1099-INT and 1099-OID with the IRS and sending copies to you by January 31st of the following year.

What information is included on these forms?

These forms contain important information for filing your tax return, including:

  • Your name and taxpayer identification number (TIN)
  • The name and address of the payer
  • The total amount of interest income paid
  • Tax withheld (if applicable)
  • Specific types of interest income reported in designated boxes (e.g., U.S. Savings Bond interest)

How to use Forms 1099-INT and 1099-OID for filing taxes:

A. Verify the information: Compare the amounts reported on the forms with your own records. Report any discrepancies to the payer immediately.

B. Report the income: Use the information on Forms 1099-INT and 1099-OID to report your interest income on your tax return. The specific line where you report the income depends on the type of interest and your filing status.

C. Keep the forms for your records: It's advisable to retain copies of these forms for at least three years after filing your tax return.