How do I account for interest from Fidelity "Fully Paid - Securities Loan" shown as "other income" on 1099-Misc?

Forum|Forum|4 years ago
March 10, 2022
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The "Fully Paid - Securities Loan" program borrows stock from me to be sold short by other Fidelity clients. The stock owner is paid interest based on demand.

The "uncommon situations" options do not offer anything close to this scenario.

If "none of these apply", Turbotax assumes this is a standalone business.

TurboTax Premier Online

DianeW777

This income is not business income, rather miscellaneous as indicated by your Form 1099-MISC. It's your money making money for you and not because of a service you performed.

It's important for you to select 'None of these apply" and then you should also select the following:

'No' on the screen 'Did the '____' involve work that's like your main job?'

'No' on the screen 'Did the '____' involve an intent to earn money?'

This will report the income without any business activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).

You can use the Preveiw My 1040 to see the income on the appropriate lines of your return.

With the Tax Tools menu open, you can then:
- View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.