What do I do with Municipal Original Issue Discount?

Confused

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Mar 16, 2013, 10:14:02 PM3/16/13

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My brokerage statement says I have $13.20 of MOID. It is not on a 1099-INT or a 1099-OID; just a note at the end of the statement.
There is a 1099-INT for the same bond of $252.50 of tax free interest.

So where does this $13.20 get entered, if anywhere?
I could enter it as though I got a 1099-OID, but there does not seem to be any way to make it tax free; or maybe its not tax free?

Thanks.

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Alan

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Mar 17, 2013, 11:41:05 AM3/17/13

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On 3/16/2013 8:14 PM, Confused wrote:
> My brokerage statement says I have $13.20 of MOID. It is not on a 1099-INT or a 1099-OID; just a note at the end of the statement.
> There is a 1099-INT for the same bond of $252.50 of tax free interest.
>
> So where does this $13.20 get entered, if anywhere?
> I could enter it as though I got a 1099-OID, but there does not seem to be any way to make it tax free; or maybe its not tax free?
>
> Thanks.
>

You treat it the same as your other tax-exempt income. Add the two
numbers together and report the total as tax-exempt interest on your
federal return.

Check with your own state on how they may tax federal tax-free muni bond
interest.

Confused

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Mar 17, 2013, 5:52:14 PM3/17/13

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On Sunday, March 17, 2013 11:41:05 AM UTC-4, Alan wrote:

>
> You treat it the same as your other tax-exempt income. Add the two
>
> numbers together and report the total as tax-exempt interest on your
>
> federal return.
>

If I do that my return won't agree with the 1099-INT. Is that a problem? Perhaps I should do it as a separate entry?
It is at the end and not reported to the IRS. Since it is tax free, it does not change anything. Perhaps it is best to ignore it?

Alan

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Mar 18, 2013, 11:01:11 AM3/18/13

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On 3/17/2013 3:52 PM, Confused wrote:
> On Sunday, March 17, 2013 11:41:05 AM UTC-4, Alan wrote:
>
>>
>> You treat it the same as your other tax-exempt income. Add the two
>>
>> numbers together and report the total as tax-exempt interest on your
>>
>> federal return.
>>
> If I do that my return won't agree with the 1099-INT. Is that a problem? Perhaps I should do it as a separate entry?
> It is at the end and not reported to the IRS. Since it is tax free, it does not change anything. Perhaps it is best to ignore it?
>

Just follow my instructions. Millions of dollars of tax-exempt interest
are reported on broker statements every year without a 1099-int. There
is no mismatch on income when you report a number larger than the
amounts on 1099s.

Confused

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Mar 18, 2013, 6:14:06 PM3/18/13

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On Monday, March 18, 2013 11:01:11 AM UTC-4, Alan wrote:
> On 3/17/2013 3:52 PM, Confused wrote:
>
> > On Sunday, March 17, 2013 11:41:05 AM UTC-4, Alan wrote:
>
> >
>
> >>
>
> >> You treat it the same as your other tax-exempt income. Add the two
>
> >>
>
> >> numbers together and report the total as tax-exempt interest on your
>
> >>
>
> >> federal return.
>
> >>
>
> > If I do that my return won't agree with the 1099-INT. Is that a problem? Perhaps I should do it as a separate entry?
>
> > It is at the end and not reported to the IRS. Since it is tax free, it does not change anything. Perhaps it is best to ignore it?
>
> >
>
> Just follow my instructions. Millions of dollars of tax-exempt interest
>
> are reported on broker statements every year without a 1099-int. There
>
> is no mismatch on income when you report a number larger than the
>
> amounts on 1099s.
>

Will do, thanks.

remove ps

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Mar 19, 2013, 8:12:10 PM3/19/13

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Alan wrote:

> > > You treat it the same as your other tax-exempt income. Add the two
> > >
> > > numbers together and report the total as tax-exempt interest on
> > > your
> > >
> > > federal return.
> > >
> > If I do that my return won't agree with the 1099-INT. Is that a
> > problem? Perhaps I should do it as a separate entry? It is at the
> > end and not reported to the IRS. Since it is tax free, it does not
> > change anything. Perhaps it is best to ignore it?
> >
> Just follow my instructions. Millions of dollars of tax-exempt
> interest are reported on broker statements every year without a
> 1099-int. There is no mismatch on income when you report a number
> larger than the amounts on 1099s.

Sometimes increasing your income may decrease your tax, as when you
stop qualifying for the EITC, tuition and fees deduction.