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What are the differences between Form 1099 INT & 1099 OID?

Form 1099 INT & Form 1099 OID Differences: To report interest paid throughout the tax period; which 1099 Tax Form would you choose? 1099 INT or 1099 OID? Confusing right!

Form 1099 INT is used to report interest income made on the investment made in the banks or any other financial distribution.

Coming to Form 1099 OID, used to report Original Issue discount made on the bonds, CDs, notes, etc. Know the detailed info & the differences between these two tax forms and report the interest income on the right form. Therefore, understanding which tax form to use helps you in avoiding unwanted heavy penalties.

Differences between Form 1099 INT & 1099 OID

What is Form 1099 INT?

IRS 1099 INT issued by the taxpayers of interest income to the investors at the year-end. Taxpayers in this sense are brokerage firms, banks, mutual funds, and other financial institutions. They file a 1099 INT Form at the year-end for paying interest for borrowing money from the lenders.

Here are the specific instructions for the 1099 INT Form. According to the IRS, File Form 1099 INT for each individual:

  • To whom you paid amounts reported in boxes 1, 3, & 8 of at least $10 or more in a tax year.
  • Or else, Interest paid of $600 or more on course of business/trade.
  • For whom you have withheld and paid foreign taxes on interest.
  • From whom you have withheld federal income taxes under backup withholding rules.

What is 1099 OID Form?

Form 1099 OID is used to report income when bonds, CDs, or notes are sold at discount from their maturity value. In other words, it is used to report interest income earned from certain bonds issued at a low price than the redeem value once the bond matures.

For example, a bond whose face value is $1,500 can be sold at $1,400. So, when the bond matures, the bondholder receives $1,500 by paying $1,400. This discounted price is captured as income over the life of the instrument. 

1099 INT Vs 1099 OID Differences

Here are some differences between 1099 INT & 1099 OID:

1099 INTForm 1099 OID
Form 1099 INT reports Interest Income on the investment made in banks or any other financial institutions.IRS 1099 OID reports original Issue discounts on bonds, or CDs, or notes, etc.
The minimum reporting threshold is “$10” or more.Minimum reporting threshold of 1099 OID “$10” or more.
Banks, financial institutions, etc file this tax form.Brokerage organizations that hold debt instruments for investors file this tax form.
Any broker or nominee who holds REMIC or FASIT regular interest files 1099 INT Tax Form.If you are reporting OID & regular interest on REMIC’s or FASIT must file 1099 OID.

Form 1099 INT Due Date

Given below are the due dates info of 1099 INT Form copies:

Copy A to the IRS – February 28th paper file/ March 31st e-file

Copy B to the recipient – January 31st every year.

Form 1099 OID Deadline

Issue Form 1099 OID copies within the deadline:

Copy A to the IRS – March 31st e-file/ February 28th paper file

Copy B to the recipient – January 1st every year.

Note: Make sure to file the tax forms within the next business day if the due date falls on Saturday/Sunday / holiday.

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