How do i report interest income on a loan to a private individual?

Forum|Forum|6 years ago
June 1, 2019
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TurboTax Deluxe Online

MargaretL

Employee

If this is a personal loan, the interest income is entered AS IF you have received form 1099-INT. Enter your individual’s name as a Payer's name and the amount of interest received in box 1.

Federal Taxes
Wages & Income
Interest & Dividends
Interest on 1099-INT

If you have interest from a Seller-financed loan (You have a seller-financed mortgage if you sell your home and you accept a trust deed or other repayment promise as part of the payment. You are the seller if you financed part or all of the buyer's purchase price when you sold the home.) - the data entry is located under:

Federal Taxes
Wages & Income
Interest & Dividends
Interest from Seller Financed Loans

evil_shenanigans

Hi @MargaretL , I'm entering this personal loan interest as a 1099-INT -- but what do you recommend I put as the employer ID number? There isn't one, obviously. Do I need to put the individual's SSN here? For privacy reasons, I'd rather not list that if I don't have to.

Turbotax doesn't like leaving that field blank, though it looks like I'll still be able to file if I ignore that warning.

Critter-3

There were 2 places mentioned to enter personal interest received ... one for a personal loan and the other if it is a mortgage ... make sure you are using the correct place.

If is on a mortgage you MUST enter all the buyer's info including the SS# and they will need YOUR information for their return ... this is how the IRS cross references your income and their deduction.

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