I cashed the american express cdmp check. do I need to claim it as income on my taxes?

Question

I rec'd the check, called Amex to verify that it was legit, cashed it and it cleared. My question is do I need to claim this as income on my taxes? I am a housewife, so not currently employed outside the home and my husband and I file jointly.
Amex was not very helpful. They just said that the check was
a refund of interest and fees and to check with my tax person.

Answer 1

I understand from your question that you had paid AMEX some interest and fees, and they refunded it to you. If you did not pay AMEX interest and fees, I wonder what that check is, if in fact it is legitimate or not.

Anyway, if a financial institution refunds interest and fees to you that were connected only with personal expenses, there is no tax due.

If the interest is paid to you since the fees were kept by the payor, then that interest is taxable to you and you will receive a 1099 from the payor.

If the account you deposited that check into has additional funds in it, I would clear that account out or freeze it or something. Talk to your bank.

Sorry I don't want to worry you but something about your question doesn't make sense.

Answer 2

Not sure what a cdmp check is. Can you give more info?

If a check is a refund of interest and fees, then it's most likely not taxable since you wouldn't have been able to deduct them earlier.