topic How to handle Car Loan Interest paid to me by my daughter in Deductions & credits

How to handle Car Loan Interest paid to me by my daughter

SteveO-59 — Tue, 10 Mar 2026 07:13:08 GMT

I loaned money to my daughter to buy a new car this year. We agreed to the going rate at the time (2.5%), and I have kept records showing principle and interest payments to date. Does she, or do I, have to create a 1099 for this, or do either of us have to send any paperwork to the IRS? Once that question is settled, where do I claim in the interest in Turbotax?

Re: How to handle Car Loan Interest paid to me by my daughter

NCperson — Thu, 29 Dec 2022 13:00:31 GMT

@SteveO-59 - no paper work required to send to the IRS; however, you have income to report (the interest). it's simply 'Miscellaneuos income'.

Re: How to handle Car Loan Interest paid to me by my daughter

Hal_Al — Thu, 29 Dec 2022 14:17:58 GMT

You can report it as interest. You can enter it at the 1099-INT screen, even though there was no actual form 1099-INT issued by anyone.

It is also OK to report it as Misc. income. But, for some people, they may require a TT upgrade.