DianeW777
Expert Alumni

Get your taxes done using TurboTax

Yes, as indicated by @MonikaK1, you are not required to report interest you did not receive.  Since you paid back an amount you were required to because you were paid twice and did return the money that wasn't yours to keep, report only interest  you did receive and did keep.  

 

Keep records in your file so that if necessary you can explain that you did not actually receive all the interest.

 

@mm1232 

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