If someone paid me interest as an independent contractor, what form do I file so they can prove they paid it?

Question

So this person paid me interest on a personal loan and on the unpaid balance of their debt to me for work done as an indepenedent contractor. I know how to report the interest as income for myself, but don't I need to file something so they can prove they paid me interest? Some sort of 1099?

Answer 1

Normally you would receive a 1099 for interest income. The person paying the interest would issue the 1099-INT to you. You only need to report this amount on your tax return.

This person may or may not be able to get a deduction on their tax return, depending if the work you did was personal or business related.

Answer 2

If they are claiming an interest deduction, the note and the canceled checks that they have for the payments they made will substantiate the deduction. It's up to them to keep their own records.