Yes, net the current year mortgage interest if the refund relates to your mortgage interest. A refund in this context is just a return of your funds and thus would not be income but would offset your mortgage interest in an amount equal to your refund.
The funds given to you as a form of "compensation for your time" is income and can be reported as other income. Although, you might also report this as interest income because it was given to you based on a time period during which you did not have access to the funds. It may be easier to report the income as interest. Because you did not receive a 1099-INT, you will probably have to indicate in TurboTax that you did not receive this form, but you can add all of the other information you would if you had a 1099-INT, such as payor and amount.
If you decide to enter this as other income, follow these steps:
In TurboTax online,
- go to Income & Expenses,
- scroll down the page to the last item Less Common Income,
- select Miscellaneous income,
- then from the list select Other reportable income. Again you will have to enter the amount you earned plus a short description of what these funds represent.
Line 8 on the Form 1040 is the line for other income. If you are using TurboTax Online, here are the steps to follow to preview your Form 1040, including line 8:
Open or continue your return.
- Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
- With the Tax Tools menu open;
- Select Tools.
- Next, select View Tax Summary in the pop-up.
- Then Preview my 1040 in the left menu.
@Lish Sturdi
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