Family Repaid my Loan - Considered Income?

[ApresMoi]

A family member paid back a loan I made to them a few months ago. In averaging my income for Schedule I, do I need to include that repayment as income? I received $300. Thanks.

[ApresMoi]

Fyi, I got the answer to this from an attorney - it's "no". Someone repaying monies they owe you is not considered income.

[mtbc]

That's interesting. I once asked if old back salary from a past employer that they'd taken a long time to get around to paying was considered income, and told "yes". (We had some that an employer paid a few years late!) I wonder where the dividing line is.

[mtbc]

Ah, maybe it's exactly about if it's repaying a loan from you, versus them just owing you money and making payments on it. Like the difference between if you're taxed on it or not. (My understanding is that back salary is taxed as income, but loan repayments are not.)

[BKDefender]

If you loaned someone money that you had already earned and they paid it back, you haven't earned any additional money. If someone owes you money for wages then pays you, you have earned additional money.
The inverse also applies - if I borrow money from someone, that's not considered income because I have increased the money I have and created an equal liability so my assets minus liabilities have not changed and those two zeroed each other out.

--William

[ApresMoi]

Yes, this is exactly what I was told, though not in these words. Thank you for the clarification.

If you loaned someone money that you had already earned and they paid it back, you haven't earned any additional money. If someone owes you money for wages then pays you, you have earned additional money.
The inverse also applies - if I borrow money from someone, that's not considered income because I have increased the money I have and created an equal liability so my assets minus liabilities have not changed and those two zeroed each other out.

--William