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Level 1
posted Mar 7, 2024 4:57:11 AM

I received some money from selling my half of out house to my ex-husband through the divorce settlement and got interest on it. How should I file this 1099?

The money from the house is in an investment account and it accrued interest. How do I file this account in my taxes?

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3 Replies
Expert Alumni
Mar 7, 2024 8:14:26 AM

You can enter it by clicking the following:

  • Federal
  • Income
  • Show more next to Interest and Dividends
  • Start next to interest on 1099-INT

This interest is taxed as ordinary income, which is the same rate your wages or salary is taxed at. 

Level 1
Apr 1, 2025 1:17:12 PM

and what if I gave some money as a gift to my daughter's down payment on her new house?

Expert Alumni
Apr 1, 2025 1:25:13 PM

The interest income would be reported the same, whether you turned around and gifted your daughter or not. 

 

As a side note, if the gift was over 18,000 for tax year 2024, you may need to file a gift tax return, Form 709 which is separate from your tax return and is not supported in TurboTax.