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geistlerd
New Member

Where do I enter as income a rebate of interest, overpaid interest?

 
3 Replies
RichardG
New Member

Where do I enter as income a rebate of interest, overpaid interest?

Please explain the payment in more detail.
geistlerd
New Member

Where do I enter as income a rebate of interest, overpaid interest?

it is on the 1098.  #4 Refund of overpaid interest.  IRS thinks it is income.  Need to include as income.
RichardG
New Member

Where do I enter as income a rebate of interest, overpaid interest?

 If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. 

However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage.  If you didn't itemize deductions for the year for which you received the recovery of an expense that was deductible , don't include any of the recovery amount in your income.

If you need to include the refund in income, report it as miscellaneous income by going to Federal Taxes>Wages & Income>Less Common Income>Miscellaneous Income>Other Reportable Income

Example.

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