Having issues with an unexpected or incorrect Form 1099-OID in TurboTax can be a real headache. Whether it's an import error, a duplicate, or just something you no longer need, getting rid of it is crucial for accurate tax filing. Let's tackle this step-by-step!
How to Remove Form 1099-OID from TurboTax: A Comprehensive Guide
Are you staring at your TurboTax screen, wondering why a Form 1099-OID is lurking there when it shouldn't be? Perhaps it was imported incorrectly, or it's a leftover from a previous year that's no longer relevant. Whatever the reason, removing an unwanted 1099-OID is a common task, and thankfully, it's usually quite straightforward. Follow this detailed guide to get your tax return clean and accurate!
Step 1: Engage and Identify the Culprit
First things first, let's pinpoint the problem. Is the 1099-OID a duplicate? Is it from an account you no longer hold? Did it import with incorrect information? Understanding why you need to remove it will help ensure you're deleting the right one and taking any necessary follow-up actions.
Understanding 1099-OID: Form 1099-OID, or Original Issue Discount, reports taxable interest income from certain debt instruments, such as bonds, that were issued at a discount. Even if you don't receive cash payments, the discount is typically taxed as it accrues. If you're seeing this form and it doesn't apply to you, or the details are wrong, you definitely want it gone.
Common Scenarios:
Import Errors: Sometimes, when you import data directly from a financial institution, TurboTax might pull in an old or incorrect 1099-OID.
Duplicate Entries: You might have accidentally entered the same 1099-OID twice, leading to inflated income.
No Longer Applicable: You may have held a bond in a previous year that generated a 1099-OID, and when transferring data, it carried over, but you no longer hold that investment.
Incorrect Information: The numbers on the imported 1099-OID might not match your physical statement, requiring removal and re-entry or correction.
Step 2: Accessing the Forms Section in TurboTax
The process varies slightly depending on whether you're using TurboTax Online or the Desktop software. We'll cover both.
For TurboTax Online Users:
Log In and Open Your Return: Make sure you are logged into your TurboTax account and have your current tax return open.
Navigate to "Tax Tools": In the upper left or right corner of your screen (depending on the interface version), you should see a section or button labeled "Tax Tools" or "My Account". Click on it.
Select "Tools": From the dropdown menu under "Tax Tools" (or "My Account"), choose "Tools".
Choose "Delete a Form": A "Tools Center" pop-up window will appear. Here, you'll see an option like "Delete a form." Click on it.
For TurboTax Desktop Users:
Open Your Return: Launch your TurboTax Desktop software and open the specific tax return file you are working on.
Switch to Forms Mode: In the top menu bar, you'll see options like "EasyStep," "Forms," or "Federal." Click on "Forms." This will switch your view from the interview-style questions to a list of all the forms in your return.
Locate the Form List: On the left-hand side of the Forms Mode screen, you'll see a list of all the forms, schedules, and worksheets included in your tax return.
Step 3: Locating and Deleting the 1099-OID Form
Now that you're in the right place, it's time to find and remove that pesky 1099-OID.
For TurboTax Online Users:
Find the 1099-OID: In the "Delete a Form" list, scroll down or search for "Form 1099-OID" or similar entries related to "Original Issue Discount." You might see multiple entries if you have more than one.
Select and Delete: Carefully select the specific 1099-OID form you wish to remove.
Confirm Deletion: After selecting, you'll typically see a "Delete" button next to the form or at the bottom of the screen. Click it. A confirmation pop-up will appear, asking if you are sure you want to delete the form. Confirm your choice.
Verify Removal: The form should no longer be displayed in the list. You can then close the "Delete a Form" window.
For TurboTax Desktop Users:
Find the 1099-OID: In the forms list on the left, locate "Form 1099-OID." If there are multiple, click on each one to view it in the main window and identify the correct one to delete based on the payer or other details.
Delete the Form: Once you have the specific 1099-OID form selected and displayed in the main window, look for a "Delete Form" button at the bottom of that window. Alternatively, you might be able to press the
Deletekey on your keyboard.Confirm Deletion: A pop-up box will ask you to confirm the deletion. Click "Yes" or "Delete" to proceed.
Verify Removal: The form should disappear from your list of forms.
Step 4: Addressing Stubborn 1099-OIDs (Troubleshooting)
Sometimes, a 1099-OID might refuse to disappear or cause persistent errors. Don't fret; there are a few extra steps you can try.
Clear Cache and Cookies (Online Version): If the form simply won't delete, or you're encountering odd behavior, clearing your browser's cache and cookies can often resolve functionality issues. After clearing, close your browser completely, reopen it, and log back into TurboTax to try deleting the form again.
Try a Different Browser: Sometimes, browser compatibility issues can prevent certain functions from working correctly. Attempting to delete the form in a different web browser (e.g., Chrome, Firefox, Edge, Safari) might do the trick.
Use "Jump To" Search (Online Version):
Click on the Search Icon at the top right of your screen.
Type the following exactly as it appears: "1099-oid original issue discount"
Click the link "Jump to 1099-oid original issue discount"
Click on "Continue"
You should see your "Form 1099-OID Summary." Select "Delete" next to the unwanted entry.
Review "Miscellaneous Investment Income" (Online Version): Sometimes, the OID entry might be tied to a broader investment income section.
Go to Federal > Income & Expenses.
Look for Interest and Dividends > 1099-OID, Foreign Accounts.
Follow the prompts. If there was an entry made that's causing a ghost 1099-OID, you might find an option to delete it from a summary page here.
Manual Adjustment for Incorrect OID (Advanced): If the issue isn't deletion but incorrect values, especially concerning Box 10 (Bond Premium Amortization) or Box 6 (Acquisition Premium) on tax-exempt OIDs, you might need to make manual adjustments or zero out certain boxes. This is more complex and might be necessary if your broker reports OID in a non-standard way that confuses TurboTax. Always consult IRS instructions (like Publication 550) or a tax professional before making significant manual changes if you're unsure.
Contact TurboTax Support: If all else fails, don't hesitate to reach out to TurboTax customer support. They can often access your return (with your permission and a "token" number to protect your privacy) and help diagnose the specific issue.
Step 5: Verify Your Return After Deletion
After successfully removing the 1099-OID, it's crucial to ensure your return is still accurate and free of errors.
Run a Full Review/Error Check: Always run the "Review" or "Error Check" function in TurboTax after making any significant changes. This will catch any new errors or inconsistencies that might have arisen from the deletion.
Check Related Forms: Deleting a 1099-OID might impact other forms or schedules, especially if it was linked to specific calculations. Briefly review your interest income sections to confirm everything looks as expected.
Save Your Progress: Save your TurboTax file frequently, especially after making successful changes.
10 Related FAQ Questions (How to...)
Here are some quick answers to common questions related to 1099-OID and TurboTax:
How to find Form 1099-OID in TurboTax?
You can typically find Form 1099-OID by searching for "1099-OID" or "Original Issue Discount" in the search bar (online) or by navigating to the "Interest and Dividends" section under "Income & Expenses" (online and desktop). In Forms Mode (desktop), it will be listed alphabetically.
How to correct an incorrect 1099-OID in TurboTax?
If an imported 1099-OID has incorrect values, the safest way is often to delete the imported form and manually re-enter the correct information from your physical statement. For specific box issues (like Box 10), you might need to manually adjust the entry within the form itself.
How to prevent a 1099-OID from importing in TurboTax?
During the data import process from your financial institution, TurboTax usually asks you to review imported forms. At this stage, you might have the option to deselect or decline specific forms, including 1099-OID, if they are not relevant for the current tax year.
How to handle duplicate 1099-OID entries in TurboTax?
Identify the duplicate entry (usually by comparing the payer information and amounts) and then follow the steps in this guide to delete one of the identical 1099-OID forms. Always keep the correct one.
How to deal with a 1099-OID if I sold the bond mid-year?
If you sold a bond generating OID mid-year, your 1099-OID should reflect the OID accrued only during the period you owned it. Ensure the amount reported in TurboTax matches your statement. If you paid an acquisition premium, that might offset some OID.
How to report OID if I don't receive a 1099-OID form?
If you believe you have OID income but didn't receive a 1099-OID, you are still required to report it. You'll need to calculate the OID based on the bond's issue price, stated redemption price, and yield to maturity, and then manually enter it in TurboTax.
How to determine if my OID is tax-exempt?
Tax-exempt OID typically comes from municipal bonds. If Box 11 (Tax-Exempt OID) on your 1099-OID has an amount, it is generally tax-exempt at the federal level, and potentially state and local, depending on the issuing entity and your residency.
How to troubleshoot a 1099-OID error that won't go away in TurboTax?
Try clearing your browser's cache and cookies, using a different browser, or utilizing the "Jump to" search function to directly access the 1099-OID summary and delete it. If the error persists, contact TurboTax support for assistance.
How to understand what Box 10 (Bond Premium) on 1099-OID means?
Box 10 reports bond premium amortization. If you bought a taxable bond at a premium (above face value), this amount reduces your taxable interest income. For tax-exempt bonds, it offsets the tax-exempt OID.
How to get professional help for 1099-OID issues in TurboTax?
TurboTax offers various levels of support, including community forums, phone support, and TurboTax Live, where you can connect with a tax expert who can review your return and assist you with specific form issues.
