We had $31,000 dollars worth of storm damage in August of last 2010, my insurance company paid $30,000 to my mortgage company. My mortgage company released $20K worth of funds to me in 2010 to pay for the repairs, just yesterday I received a 1099-MISC for $20k. Of course I was not expecting this and filled my taxes the day before. Now what do I do?

I’m thinking that I should amend the filling and show the 1099-MISC as income and list the damage as a deduction of $20k with my insurance paying me $0. My thought is that my insurance company paid my mortgage company and not me, this should even out my 1099-MISC Income with a deduction. Any thoughts.

Thanks….