I got a 1099-Misc from my mortgage loan bank that list as other income the credit they gave me for closing costs. I was the buyer. Is this taxable?

[edavance]

The mortgage loan credit was used for closing costs.

[Leonard · Accepted solution]

No, it is not taxable.

The credit you received from the bank was a return of excess payments that you made at closing.

[edavance]

Thank you.

[Leonard]

You are welcome

[alfonza-brown]

Hi Leonard, I would like further clarification. So, we do not have to report credits that they gave us, even though they applied the credit during the closing?

[kujo2653]

I also recieved one for the same reason. However, the 1099-Misc is submitted to the IRS. How do you correct this to avoid paying taxes for this sum? It should show that I'm missing a 1099-MISC reporting if I tried to just file without it.