Sold rental property Jan 2018. Received property insurance refund paid from escrow in 2017 that was on schedule E in 2017. How do i treat the refund i received in 2018.

[JulieR · Accepted solution]

If you received a refund of an expense deducted in a prior year, you will report the refund as "other income" on your return.  The easiest way to enter this "other income" in TurboTax Premier (Windows) is to switch to the Forms view (Ctrl+2). Then Open Form "1040 Wks". Scroll down to Schedule 1 - Adjustments to Income, and enter the "other income directly on line 21.