Taxable Income?

[Ken]

I just had a client in my office who has refinanced his house.I'm not sure how all that works but in the process of refinancing, he was given a check for $1812.00. It was called an escrow balance refund.

I dont think this would be taxable. Does anyone disagree?

Thanks in advance.

Ken

[Bird Legs]

Ken

You are correct. Apparently the escrow account was overfunded and the mortgage company just refunded a portion of it.

[Koss]

Escrow Refund

Escrow is money held on deposit by the lender for future payment of real estate taxes and homeowner's insurance. A refund of this money is not taxable income.

Burton

[Ken]

thanks guys

I didnt think it would be taxable but I appreciate your opinions verifying that.
thanks again
Ken