Do I claim interest paid to me on a property tax lien that was redeemed?

[hillaagsa]

I purchased a property tax lien in 2020 and have been working with a lawyer to foreclose. But the owner came back and redeemed the property paying the lien, lawyer fees and interest due. So do I need to claim the interest paid to us even when it was only like $13?

[DaveF1006]

Go to federal>wages and income>interest and dividends>interest on a 1099-INT.  Even if you didn't receive a 1099-INT, you would still report that here.

[hillaagsa]

I just checked we were paid the interest in January 2022. So that would actually go on next years taxes?

[Vanessa A · Accepted solution]

Yes, if you received the interest payments in January 2022, it would go on next years taxes.