Lish Sturdi
Returning Member

Deductions & credits

I'm new to using this but I saw your question about what form it was on when I was trying to find the answer to this.  For my client, it is just on a form 1098 reporting the interest and then attached to that is just a document or letter from Wells Fargo giving the amount for refund of the rate lock extension fee and then a line for "compensate you for the time you did not have these funds".  The loan was back in 2004 but I found that he did deduct the interest and deducted "part" of the rate lock extension.  With that being said, should I net the current year mortgage interest with this amount of refund or show the whole amount of refund as income.  Then, would I show the "compensate you for the time you did not have these funds" amount as other income?

 

Any help is appreciated.