EIDL loan repayments

[mperry3060]

I am a business owner (Sole Proprietor). Would I report on Schedule C under "Interest Payments" the interest I paid in 2022 on my EIDL loan?

Thank you much,

Marcus

[MayaD]

Yes. The interest that you pay is typically a tax deduction for your business.

[sethjames9000]

Where do I enter EIDL loan interest as a sole proprietor?

[JulieS]

Yes the interest on your Economic Impact Disaster Loan (EIDL) is deductible as a business expense. 

This is how to enter it in TurboTax:

1. Open you return, select Federal on the left side menu, then  Wages & Income.
2. Scroll down and find Self-employment income and expenses, select Start or Revisit to the right.
3. Answer the first question Yes. 
4. Click Continue until you get to EXPENSES.
5. Click Add expenses for this work at the bottom of the expense summary.
6. Click on Less common expenses at the bottom of the list.
7. Check the box next to Credit card, loan, and other interest, click Continue. 
8. Click Start to the right of Credit card, loan, and other interest.
9. Enter "EIDL interest" as the description and the amount of interest that you paid. 
10. Click Continue.