I made a loan to my mother, she paid it back with interest - how do I report the interest she paid to the IRS?

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I made a loan to my mother, she paid it back with interest - how do I report the interest she paid to the IRS?

The interest was under $10,000 - I don't want it to be a gift, I want it to be considered interest. Do I need to file a 1099? Does she? If yes, which "flavor" (maybe 1099-INT)?

I understand that I'll need to report the interest I earned as income and that is OK - I just don't know if she or I needs to file something in the form of a 1099 to the IRS to indicate that she paid the interest.

just_the_facts_ma'am

There is no requirement to file a 1099. Here's an excerpt from the 1099-INT instructions:

Interest excluded from reporting. You are not required to file Form 1099-INT for interest on an obligation issued by an individual..., . See Regulations section 1.6049-5 for more information.

ToYsTeMpTer

you made your mother pay interest?!!
my god whats wrong with you

anywho, yes you need to claim all earnings even the petty interest you made your poor mother pay you after giving you a life

I love my baby boy!

You made your MOTHER pay you interest? That's just wrong.

acmeraven

You would report the interest earned on Sch B with the name of who paid you and how much; just like interest earned from the bank. I could never charge my Mother interest, it would seem almost sacraligious and unamerican.

bostonianinmo

You claim it on Schedule B and record her information there. The total goes to line 8a on your Form 1040 tax return. Neither of you prepare a Form 1099 or any other forms to report it. If it was deductible interest for her, such as a home mortgage, then she must show your details on her Schedule A when she files her return.

Note to all of the other posters with the smartass remarks: The IRS will tax the imputed interest that would have been payable on the loan if the interest is at below market rates. Paying taxes on interest that you didn't receive is even DUMBER than charging your mother the interest.

Martinmm

alrite then you pay the taxes on the gift and dont squat back about how stupid you are after.give your mom back some that you would have paid if she did not give you somthing back .or dose she have more than shes telling?umhuph ?!

it would be a good exception to the known laws " to alow for the small amount of redemption your talking about.

Get Going

include the amount on other income line & write the explaination on the 1040 - interest from a debt

shakq111

Call IRS and get the form called 1099. Also ask them details when u call them.

newhouse

Technically she should issue you a 1099-Int. She can do this by requesting the forms 1099-INT and a 1096 from the irs.gov website (all these forms are free). You will simply report the interest as interest income on schedule B of your form 1040.

Fred T

Put the interest income on Schedule B. And folks---it's not our business to criticize someone because they charged their mother interest because mom could be the one at fault here.

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