File 1099-OID Online for 2026 Tax Year

What Is Form 1099-OID?

Form 1099-OID (Original Issue Discount) is an IRS information return used to report OID income from certain debt instruments, including bonds, notes, and some certificates of deposit.

OID is the difference between a debt instrument's stated redemption price at maturity and its lower issue price. The IRS treats this accrued discount as taxable interest income, even when no cash payment is received during the year.

Who Needs to File Form 1099-OID?

If you are a payer, issuer, or other reporting entity (such as a broker, nominee, or middleman) responsible for reporting OID to a recipient, you are required to file Form 1099-OID. This includes:

• Banks, brokerage firms, and other financial institutions
• Issuers of certificates of deposit (CDs) with OID and a term of more than 1 year
• Trustees and middlemen of Widely Held Fixed Investment Trusts (WHFITs) and Widely Held Mortgage Trusts (WHMTs)
• Issuers of Real Estate Mortgage Investment Conduits (REMICs) and Collateralized Debt Obligations (CDOs)
• Nominees who receive OID income on behalf of another person

What Income Needs To Be Reported on Form 1099-OID?

Form 1099-OID is used to report the following types of income to the IRS:

• Taxable original issue discount: OID that accrues on bonds, notes, and similar debt instruments during the year
• OID on U.S. Treasury obligations: reported separately from other OID
• Tax-exempt OID: reported for informational purposes even though it is not taxable
• Market discount subject to a Section 1278(b) election: when a bondholder elects to include market discount in income annually
• Qualified stated interest: report on Form 1099-OID (Box 2) when it is paid on a debt instrument that also has original issue discount (OID); do not file a separate Form 1099-INT for that same instrument

Form 1099-OID Updates for the 2026 Tax Year?

The One Big Beautiful Bill Act (OBBBA) made no changes to Form 1099-OID. The $10 reporting threshold, backup withholding triggers, and filing deadlines all carry over unchanged into the 2026 tax year. The same rules that applied before OBBBA continue to apply.

Key Requirements To File Form 1099-OID

You must file Form 1099-OID when the original issue discount is reportable for a recipient. Here is when filing is required:

• File if the OID includible in a recipient's gross income is $10 or more for the year
• File for any recipient for whom you withheld and paid foreign tax on OID, regardless of the amount
• File for any recipient from whom you withheld federal income tax under backup withholding, even if the OID is less than $10

Before you file, make sure you have the following ready:

• Payer and recipient legal names and addresses
• Taxpayer Identification Numbers (TINs) for both parties
• Total OID amounts, stated interest, and any withholding figures
• Applicable box-level reporting details

If you file 10 or more information returns in aggregate across all form types, eFiling is mandatory. You may apply for a hardship waiver using Form 8508 if you cannot meet this requirement.

If you need to correct a return after filing, submit a corrected Form 1099-OID following the IRS general correction rules for information returns.

Form 1099-OID Deadlines for the 2026 Tax Year

For the 2026 tax year, the following IRS filing deadlines apply:

Note: The standard January 31 recipient deadline shifts to February 1 because January 31, 2027, falls on a Sunday. The standard February 28 paper filing deadline shifts to March 1 because February 28, 2027, falls on a Sunday.

If a tax filing or payment due date falls on a Saturday, Sunday, or legal holiday, the deadline is automatically moved to the next business day.

How to eFile Form 1099-OID with 1099Online

Filing Form 1099-OID with 1099Online takes just a few steps. Use manual entry or bulk Excel import, validate TINs in real time, and choose how recipients get their copies.

Step 1: Enter Recipient and Income Details

Select Form 1099-OID and enter your filing information manually or import multiple records using bulk Excel upload. Add recipient details and report OID amounts, stated interest, withholding, and other required box information.

Step 2: Choose Recipient Copy Delivery

Select secure email or USPS print and mail for recipient copy distribution.

Step 3: Review and Submit

Run a TIN Match, review your filing summary, and submit your forms to the IRS.

Form 1099-OID: Frequently Asked Questions