We refinanced in 2017. The 2nd lender overpaid the 1st lender. when paying off the original loan. We received a check for 110.00. Is this considered income?

posted

Probably not.

Suppose your loan balance was $100,000, and your new lender accidentally paid them $100,110 because they got the payoff amount wrong. I assume you actually borrowed the $100,110 (plus fees and closing costs) so this is just money that you borrowed, coming to you instead of to the old lender. Money you borrow is not taxable income as long as you pay it back.