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March 27, 2022
Question

How to enter interest paid on family member loan

  • March 27, 2022
  • 1 reply
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My husband & I made my Dad a short-term loan.  We did some research to make sure it was legal and he paid us proper interest.   Do I account for that interest on my taxes? And if so, where?

    1 reply

    LeonardS
    March 27, 2022

    You will enter the interest in the same way as you would interest from a bank, except you will use the name of the individual you are paying the interest to and use their social security number as their tax Identification Number.  Follow these steps to report the interest paid

     

    1. Sign in to your TurboTax account and open or continue your return
    2. Select Federal from the left menu, then Wages & Income (this is called Income & Expenses in TurboTax Self-Employed)
    3. Locate the section titled Investments & Savings and select Show More, then select Start or Revisit next to Interest on 1099-INT
    4. Select Okay! on the screen Time to kick off your investments! OR Yes on the screen Did you receive any interest income? then Continue
      • If you see the screen Your investments & savings or Here's your 1099-INT info, select Add investments or Add another 1099-INT, then Continue
    5. On the next screen, select how you want to enter your Form 1099-INT:
      • If you want to import your form, search for your brokerage or financial institution. Sign in to your online account and select Get my form
      • If you want to upload a copy of your form or manually enter the info, select Enter a different way, and follow the instructions to enter your 1099-INT
    6. On the screen Do any of these uncommon situations apply? Check the boxes according to your situation and Continue

     

    Ref: https://Where do I enter Form 1099-INT?

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