I lend my friend $50k, who is paying me back $1100 a month. Should I file a tax on it?

[KatherineC]

That depends.  Is your friend paying you interest on the loan? 

If your friend is paying interest on the loan you will need to report the interest income on your tax return.

• In the search box in the upper right corner, type in interest income and click on the magnifying glass
• You will receive a "Jump to" interest income.
• Answer Yes, you received interest income.
• Indicate you will type it in yourself.
• On the next screen, you will enter who paid the interest and the amount.
• You will be asked if any of the uncommon situations listed apply.
• On the following screen, you will be asked if you have any more interest to report and you are done.
  

[cyberforma]

Thanks Katherine,

No, I am not planning to charge him an interest. He is my friend. But he lives in another state. He is willing to do the monthly transfer. That's what made me thinking... Will I have to file a tax on it? TIA

[KatherineC]

No, if there's no interest income, there's nothing to report.

[cyberforma]

Thanks again, Katherine!

[KatherineC]

You are most welcome!