If a homeowner receives a refund of home mortgage interest that has been deducted in an earlier year and that reduced their tax, generally the refund must be included in income in the year it was received.
What do you mean by refund tax?
Tax refunds are payments sent to taxpayers who have overpaid their taxes, frequently as a result of having too much income tax withheld by their employers.
What is considered home mortgage interest?
Generally, any interest you pay on a loan that is secured by your home is considered to be home mortgage interest (main home or a second home). The loan could be used to purchase your property or as a second mortgage. For home mortgage interest to be deductible, the following conditions must be met.
Learn more about Tax refunds: https://brainly.com/question/2135349
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