How do I report interest income from a loan?

[SabrinaD2]

You should report interest income from a loan on your federal income tax return as ordinary income and the the interest will need to be entered as though you had received a 1099-INT from the person that you issued the loan to:  See Steps below:

1. Open or continue your return.
2. Go to 1099-INT interest income.
3. Select Yes on the screen Did you receive any investment income? then Continue.
   • If you see the screen Your investments & savings or Here's your 1099-INT info, select Add investments or Add another 1099-INT, then Continue.
4. On the next screen, select how you want to enter your Form 1099-INT:
   • Manually enter the info, select Enter a different way, and follow the instructions to enter your interest.
   • Fill in payor and amounts and other required steps
   • TurboTax will help you complete the rest.