Question

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

Forum|Forum|1 year ago
February 10, 2025
2 replies
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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.

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M

marcusmarkAuthor

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.

V

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.

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B

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

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F

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.

B

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

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