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Submitted By: Kurt
Answered: July 8, 2016 9:28 am
Answered: July 8, 2016 9:28 am
Where on my tax return do I report loans to my grandchildren?
Report the interest from these loans as you would report any other type of interest income. Depending on the amount of your interest, you may enter it directly on your return or need to complete Schedule B of Form 1040. If you didn’t charge interest or you set interest at below the IRS’s applicable rate for the period of the loan, you may have phantom interest to report. This means you report the interest even though you don’t receive any such payment. However, there’s no phantom interest on gift loans (loans no more than $10,000), and there are special rules for loans to family members up to $100,000.
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A credit for income taxes paid to a foreign country or U.S. possession. 401(k) plan. A deferred pay plan, authorized by Section 401(k) of the Internal Revenue Code, under which a percentage of an employee’s salary is withheld and placed in a savings account or the company’s profit-sharing plan. Income accumulates on the deferred amount until withdrawn by the employee at age 59?
