How do I input interest income from private family and mortgage loans?

[Vanessa A]

This will go under Interest and Dividends in the section that says Interest from Seller-Financed Loans

To get there, you can go to the search bar and type in Seller-financed loan, then select Jump To.  Then walk through the steps to enter the interest paid to you.  You will need to enter the Name, address, and SSN of the person who is paying you the interest as well as the amount of interest you received. 

[marcusmark]

This helped with actual seller financed loan interest. But I also have mortgage loan interest from a family member which was not the result of a seller finance but rather as a private mortgage. Additionally, I have some family loan interest received which was not associated with a mortgage. Any help will be appreciated.

[Vanessa A]

Any other interest you receive from a loan you made or even from bank interest would be entered in the area where it says Interest on 1099-INT even though you did not get the 1099-INT. This will put it on line 2b of your 1040 form.  Your mortgage interest that you received will also end up on line 2b, combined with your private loan interest and any other interest you receive. 

[fredflintstone1]

I have the same issue, so I entered the information as if I have received a 1099-INT from my daughter and son-in-law; however TurboTax issues an error message when I enter my son-in-law's SSN (in SSN format of XXX-XX-XXXX) as the Payer's EIN.

[BrittanyS]

When entering the mortgage interest, make sure to select "the seller is financing this loan and I didn't receive a 1098".  (see screenshot below)

This will take you to the private lender screen where you can enter a SSN.

@fredflintstone1 

[fredflintstone1]

Thanks for the suggestion, Brittany; however, this is NOT a seller-financed mortgage.  My wife and I loaned money to our daughter and son-in-law, so they could buy a house from an unrelated third party.

[BrittanyS]

Are you trying to enter the mortgage interest received from your daughter as income on your return?  Or are you trying to help her enter the interest she paid on her return?

If she is trying to enter the interest, the selection I gave will open up the private lender option.  It does not actual list the loan as a seller finance.  See the screenshot of the form below:

If you are trying to add the mortgage interest you receive to your return, Vanessa A provided steps above to help.  I have copies her steps here for easy review, "This will go under Interest and Dividends in the section that says Interest from Seller-Financed Loan.  To get there, you can go to the search bar and type in Seller-financed loan, then select Jump To.  Then walk through the steps to enter the interest paid to you.  You will need to enter the Name, address, and SSN of the person who is paying you the interest as well as the amount of interest you received. "

Again, the wording seller-financed is a way for TurboTax to open the private financing option.  If you still have questions, please respond and we will continue to help.  

@fredflintstone1 

[fredflintstone1]

Hi, Brittany

Thank you for the suggestion.  However, when I open the seller-financed option, the headline reads "You receive seller-financed interest only if you sold your home and accepted a trust deed or repayment promise from the buyer."  Given that heading, specifically because we did not sell our home to our daughter and son-in-law, it does not seem to be the appropriate place to enter our intra-family mortgage interest.

With apologies for my attention to details. but it still seems to me to be better to report it within a 1099-INT; however, when I take that approach, I get an error message when I use my son-in-law's SSN (in ###-###-#### format).

Have a great rest of your weekend!

Dale

[DianeW777]

Yes, you can feel free to use the 1099-INT entry. Use your son-in-laws SSN in the name description and do not enter it in the EIN space.  Be sure to delete the field when you come to it.

@fredflintstone1 

[fredflintstone1]

Thanks for the guidance, Diane!  That approach got rid of the error message.  Dale