No, if you were refunded an amount of mortgage interest that you actually used as a deduction on a tax return using itemized deductions in a prior year for this mortgage, then this would be considered income in 2023, the year you received the refund.
If you did not use this amount as part of your itemized deductions then there is nothing to report.
Considerations for determination:
- Date you first took out this mortgage
- How many years did you itemize deductions using interest from this mortgage
- Total mortgage interest paid to this mortgage holder for the life of the loan
- Total mortgage interest deducted on your tax return
- Divide 4 above by line 3 above to find the percentage of the interest refunded that might be income
If there is any amount to report follow the steps below.
Go to the Wages and Income section of TurboTax
- Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income > Enter a description (Refunded Mtg Int) and the amount
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