how do i report oid on my tax return 
taxpayers should use form 1099 oid original issue discount to report any interest that is taxable oid this type of interest is generally taxed as ordinary income however if a short term discount obligation is redeemed at maturity it will should be filed as form 1099 int brokers and middlemen will typically send the appropriate form to their clients for tax purposes 2the bottom linean original issue discount oid may be offered by companies when they sell their face value bonds or other debt instruments at a discount often bonds are sold at maturity for a sum less than their stated value the difference between the two prices is the oid which is considered additional interest income for the buyer the oid amount must be reported by the buyer as part of taxable income as it accrues over the remaining life of the bond regardless of any payments from the issuer during that time in addition the buyer may pay taxes on the actual interest income received 