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

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Hal_AlAnswer

Level 15

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_Al

Answer

Level 15

chrisjcbAuthor

Level 2

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.

Anonymous

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.

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