How to report a 1099-MISC income from a Private Credit fund investment?

[paulfrank1991]

Hey guys,

I received a 1099-MISC this year from a private credit fund that I invest in. I'm using TurboTax Premier desktop version, and the software keeps directing me to report this income on Schedule C as sole-proprietor business. Can anyone share some experiences or advice regarding my situation?

Thanks a lot!

[DavidD66]

If it's from a private credit fund investment it sounds like it is interest income.  If that is the case, you should report it as interest income even though you didn't receive a Form 1099-INT.  If you want to report it as "other income":

• Type "Form 1099 Misc" in the search window and hit enter
• Click on "Jump to Form 1099 Misc" 
• Answer "Yes" to Did you get a 1099-MISC?
• Enter the information from your 1099-MISC
• Enter a description such as "Private Credit Investment Return"
• Mark choice "none of these apply" for  "Does one of these uncommon situations apply?"
• Indicate "No, it didn't involve work like [your] main job.
• Indicate that you received in 2024
• For the question "Did the Investment involve an intent to earn money?"  Indicate "No".  Your intent was to make, not "earn" money.
•  

The amount will be reported as Other Income on Schedule 1, Line 8z.