How to handle interest earned from a personal loan? I completed 1099-INT, but know we must fill out a Schedule B with their SSN so they can deduct interest on their taxes

Forum|Forum|6 years ago
June 3, 2019
2 replies
0 views

No text available

TurboTax Free Edition Online

Best answer by Hal_Al

If you received interest from a personal loan, YOU do not complete a 1099-INT. If anybody completes one, it is the person paying you the interest. But individuals do not usually have to file a 1099-INT, just banks and similar companies. You report the interest from your own records. You report the interest on schedule B, but you don't send anything to the person paying you unless the loan is a mortgage. Then you send form 1098

Hal_AlAnswer

Employee

chrisjcbAuthor

Thank you so much - this was way more helpful than the info I just got from two people at the IRS, neither of whom knew the answer. This is a mortgage so we'll do the 1098.

MichaelDC

Employee

Right. You can report this interest as if you received a 1099-INT. Just enter the payor's name, and the amount of interest you received. Since this is not a mortgage, they can't deduct this interest and no Social Security Number is needed.

Please feel free to post any additional details or questions in the comment section.