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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.