Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Tax question - Form 1099, Line 8 Tax Exempt Interest

Tax question - Form 1099...
Tax question - Form 1099 , Line 8 Tax Exempt Interest reflects $500; OID 1099 is 0. Under heading Detail for tax exempt interest it says tax exempt interest is $300. Under Detail for Tax Exempt OID it says OID is $200 so I guess (300+200 = 500 total tax exempt) Do I just pick up $500 tax exempt? What do I do with $200?
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 hour by:
8/30/2017
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,512
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Hello my name is ***** ***** I will be able to assist you with your 1099 and Original issue discount question

Ask Your Own Tax Question

Original issue discount (OID) is a form of interest on a debt instrument such as a bond or note issued at less than its face amount. The discount is considered additional interest income.

Ask Your Own Tax Question

Essentially, you have two forms of income from a debt instrument being reported to you.

The first is the interest payment. The second, is the increase in value of the debt instrument (bond for example) towards the face value at maturity.

Ask Your Own Tax Question

You would report the income on your taxes as stated on the 1099 and from what you have shared, yes, you have received $500 of tax free interest. However, you still need to report the income for alternative minimum tax and other reasons

Ask Your Own Tax Question

I would be happy to expand my answer if you have any further questions.

If you have NO further questions please accept my answer.

Thank you!

Ask Your Own Tax Question

Do you have any further questions?

Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,512
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified
Chad EA, CFP ® and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 9 months ago
Thank youIs the $200 reported in the detail of Tax Exempt OID considered AMT ? It wasn't reported on 1099INT as AMT

The $200 may(and most likely will be ) used to determine if you owe any alternative minimum tax. There are some municipal bond funds (depending on what the issuing municipality uses the bond revenue for) which aren't used for AMT purposes, but odds are you will have to add the tax free interest earned back to into your AGI when computing AMT.

Ask Your Own Tax Question

To clarify, the interest earned from some municipal bond funds aren't included in computing AMT. You may own a bond fund not subject to AMT. If you have previously had to pay AMT, then it would make sense to own a bond not subject to AMT, which would explain why the amount isn't reported on the 1099INT

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CFP ® Your Own Question
Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,512
2,512 Satisfied Customers
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

Chad EA, CFP ® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Do I have to file Fed Income Tax forms if the income of my
do I have to file Fed Income Tax forms if the income of my corporation is less than $5000 per year? … read more
Carter McBride
Carter McBride
LLM
1,139 satisfied customers
I am trying to file an IRS Form 1023 requesting tax-exempt
I am trying to file an IRS Form 1023 requesting tax-exempt status for an international charity that was incorporated in England and Wales eight years ago.Should I name it Friends of "the charity name"… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
IRS Tax Question: Is there an exemption for the early
IRS Tax Question: Is there an exemption for the early withdrawal of a 401(k) due to damage from Hurricane Harvey? Please provide IRS references.… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I'm preparing form 1120-H for a HOA. The total exempt
I'm preparing form 1120-H for a HOA. The total exempt function expenses are greater than its exempt income. What amount should go on line C and D? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,043 satisfied customers
I'm on J-1 visa from Belgium. income is exempt under tax
I'm on J-1 visa from Belgium. income is exempt under tax treaty. however, i received a k-1 from an investment club that includes $54 capital gain. is this income exempt? I was told it's exempt under a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I'm on J-1 visa from Belgium. income is exempt under tax
I'm on J-1 visa from Belgium. income is exempt under tax treaty. however, i received a k-1 from an investment club that includes $54 capital gain. is this income exempt?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,255 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Is savings bond interest tax exempt if the bond has not been
is savings bond interest tax exempt if the bond has not been cashed in … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Received Canadian Form NR4, Income Code 02, and exemption
Received Canadian Form NR4, Income Code 02, and exemption code S. How is this reported on form 1040 … read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
2017 Interest Income on a 1099- that is box 8 tax exempt
2017 Interest Income on a 1099-B that is box 8 tax exempt Interest. if the interest came from NYS or NYC bonds are they Federal and NYS tax exempt.?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My brokerage tax statement form 1099 - OID Box 11 tax exempt
My brokerage tax statement form 1099 - OID Box 11 tax exempt OID $164.19 where do i report this entry on my 1040? thank you… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,043 satisfied customers
In Georgia State Income tax exempts pensions from tax up to
In Georgia State Income tax exempts pensions from tax up to $65,000 but it does not double it for married couples filing jointly. Our (my) pension income is $125,000 and we pay GA tax on $60,000. Can … read more
abci168
abci168
Principal
27 satisfied customers
I have a form 1099-INT that lists tax exempt interest on
I have a form 1099-INT that lists tax exempt interest on line 8 and bond premium on tax exempt bonds on line 13. Is the line 8 amount already "adjusted" for the line 13 amount, or is the interest I sh… read more
abci168
abci168
Principal
27 satisfied customers
Myself and my ex.wife alternate claiming our daughter in the
Myself and my ex.wife alternate claiming our daughter in the USA(Federal and State) tax return. This year(2017) I can claim my daughter in the tax return. I pay 40% of the child care amount to my ex.w… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
On Form 1065, which places do you report interest income.
For Partnership on Form 1065, which places do you report interest income. Such interest earned on a bank account balance by the Partnership.It seems like it needs be put on "Line 7. Other Income (Loss… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,255 satisfied customers
Can you rollover interest income on a promissory note that
can you rollover interest income on a promissory note that has a 3 to 5 years maturity date? … read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
2,512 satisfied customers
I have a question about interest income and interest
I have a question about interest income and interest expenses. We owned a small business which we sold in 2016. We provided the financing for the buyer. He continues to make monthly payments which inc… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
What is the federal income tax exemption for a single tax
What is the federal income tax exemption for a single tax payer for 2017? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x