PTIN Seal

Interest Income

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Interest Income
  4. Zero coupon bonds Interest

Zero coupon bonds Interest

Interest earned on zero coupon bonds is treated as original issue discount (OID) and is taxed every year owned. You will receive a 1099-OID slip reporting the taxable amount that is reportable on IRS Schedule B.

Need Professional Help?

If you need help with "Interest Income" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.