If my bank sent a reimbursement check for interest on my escrow account for my mortgage that was "incorrectly applied" with no corrected 1099-INT where do I enter this?

[Opus 17]

You can enter interest items that do not have 1099 forms, just look under the interest income section. However, if this check was sent to you in 2020, it would be 2020 income and you would be expected to get a 1099 next year—even if the correction is for a previous year it is still income in the year it is actually paid.

[Carl]

Better read that letter again. Generally, escrow accounts do NOT pay interest. Additionally, the refund from the escrow account is *NOT* taxable income and you do *NOT* report it anywhere on *ANY* tax return.

The amount of your monthly mortgage payment contains three items:

1) The interest payment

2) The principle payment (this actually reduces your outstanding loan balance)

3) An *ESTIMATE* of what your property taxes and insurance will cost, that goes into the escrow account. The monthly escrow contribution is based on an "ESTIMATE" of what your property taxes and insurance will cost for the year. . If the "actual" amount of those two items is less than a given percentage of the estimate (commonly 10%) then the escrow account holder (usually the mortgage lender) is required by law to refund you the difference.

Money placed is escrow is "YOUR" money that you "ALREADY PAID" taxes on. It remains "YOUR" money until it's used to pay the insurance, property taxes, and anything else that your lender may require you to place in escrow, as a condition of you getting the mortgage loan.

You have already paid taxes on that money in escrow. If you report the refund of the amount from escrow, then you will pay taxes on tie *AGAIN*.  Don't do that.

[dbryantfamily]

Mortgage Companies are now required to pay interest on monthly property tax and insurance withholds.   The mortgage company adds that interest to the withhold account but sends a 1099-INT.  If this is for a Rental Property it seems reasonable that the interest shown on the1099-INT be included in the Rental Income vice personal income and thus be offset by rental expenses.  But Turbotax Home and Business 2023 does not allow 1099-INTs to be entered as a rental income.   1099-INT entry is only under personal income and thus is liable for the full incremental personal income tax rate.   Can this be fixed?