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Is he repaying you a loan? Generally, repayment of the loan principle is not taxable. Only the interest is considered a taxable income. You will report the interest on Schedule B.
Because you didn't take a deduction on your tax return when you loaned him the money (I am assuming), you don't need to claim it on your tax return when he pays you back. It is a repayment of the principle. If he pays you back with interest, than you claim only the interest on Schedule B.
For instance, you loaned him 25K at 3% interest, so he pays you back 25,750. The 25K is not taxable and you will claim $750 as interest on your tax return.
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