Should I pay tax on this? In 2016, I received a refund for mortgage fees I paid when I refinanced my home mortgage in 2012. Citibank sent me a check for around $4000.

[hike278]

In 2016, I received a refund for mortgage fees I paid when I refinanced by home mortgage in 2012. Citibank sent me a check for around $4000 because of mistakes they made. I refinanced the loan with Chase bank (it was originally with Citibank.)  Is this refund amount taxable?

I have not received a 1098.

[DianeW · Accepted solution]

If this was interest or points paid on the mortgage loan from Citibank and you deducted those fees in an earlier year then the refunded amount must be reported as a recovery of a previous deduction used to reduce income.

If you never deducted the fees, because you did not use them on itemized deductions, you don't have to report the refund.

If you decide you must report the income use the steps here to include the income.

For TurboTax Desktop use these steps:

1. Choose the Federal Taxes tab
2. Wages & Income
3. Scroll to Less Common Income
4. Select Reimbursed Deductions from a Prior Year
5. Select Other itemized deductions
6. Enter the amount (image attached)