Other Income

Forum|Forum|7 years ago
March 5, 2019
1 reply
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Isabella G,

Thanks for responding!! The income comes from notes (example-Barclays Bank PLC MTN 6.9% that pay monthly coupon

payments. Coupon payments continue to be paid monthly or annually (depending upon the note) as long as the S&P does not

drop 20% from what the S&P was when you bought the instrument. These payments used to show as interest income on the brokerage 1099, but now they show as other income on the 1099. Should I be showing this income as something other than

"other"?

Thanks,

Jimbo

IsabellaG

Level 13

Well, there's no way that this is Schedule C self-employment income. It still sounds like interest to me, unless there's some other component of the coupon payment that I don't understand. If the brokerage sent you the equivalent of a 1099-MISC, with box 3 filled in for "other" income, I'd report it as a 1099-MISC, but continue with TurboTax to say that it's interest on a note, that it doesn't involve work like your main job, that you got in 2018 (only check 2018) and that it does not involve an intent to make money. I know that sounds counter-intuitive, but that's how you get the income reported as Other income, not self-employment income. If this isn't on a 1099 equivalent (brokerage statements can be quite involved). I'd just report it as interest income. And I'd surely ask the brokerage the reason for the change.

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Saineel

Level 2

for 2021 taxes, I am encountering the same problem as reported by other taxpayer. Is it ok to treat the coupon payments as INTEREST?

thanks in advance

DianeW777

Level 15

it depends. If the income is reported on Form 1099-MISC you should report it using the steps below.

This income is not business income, rather miscellaneous as indicated by your Form 1099-MISC. It's your money making money for you and not because of a service you performed.

It's important for you to select 'None of these apply" and then you should also select the following: