I held a mortgage on a property that the current owner refinanced in Sept. Where/how do I report the income from the payoff and the payments received till it re-fi'd?

[AmyC]

The interest earned is reported on Sch B. A pay off is a return of your money and is not taxed.

Was this a seller financed sale? Was it your house?

If you simply held the mortgage, follow these steps:

Go to Federal

1. Income
2. Scroll down to Interest and Dividends
3. Select Interest on 1099-int  (if seller financed, pick that option instead)
4. Add
5. I'll type it in myself
6. Continue
7. Received from: Enter SSN or Last Name
8. Box 1 Enter interest earned
9. continue
10. If you have their social, that can be entered as the EIN, otherwise, No, they didn't
11. continue
12. continue

[schubertturbotax]

Thank you. It was not my home but I home I previously owned as an investment.  When I sold it in 2014, I held the mortage for the new owner. He refinanced in 2020 and got a new loan with a bank in Sept, so I received some mortgage payments and then the payoff.  Thank you for your help!

[Carl]

A pay off is a return of your money and is not taxed.

Be careful here. Understand that may not be true for a seller financed loan. For example, if the seller originally purchased the property for $150K and then sold it $300K as a seller financed loan, I seriously doubt the seller of a property gave the buyer $300K of their money they already paid taxes on, so the buyer could pay it back in installments.