xiujunliu
New Member

Question about friend/family loan repayment

Hello, i have a tax question and wonder if someone could help me out!

 

i loaned a friend of mine in 2020 in amount of $30K and she is repaying me monthly in amount of $2200 in 2021. i did not report these monthly payments to my tax return because i thought these are not income. i did not ask her to pay interests and these monthly payments are paid toward to the loan principles. 

 

My question is should i report these monthly deposit as income? is my understanding correct?

 

thank you!