W're getting a refund from the VA funding fee we paid on our home loan. Will this be counted as income and taxed?

[DoninGA]

Do you enter the VA Funding fee as a Mortgage Insurance itemized deduction on Schedule A for a prior tax year?  If so, were your Total Itemized deductions for that year greater than the Standard Deduction for your filing status?  If not, then the refund is not entered as income.