We had roof damage due to hail and filed an insurance claim. We received $14,000 from our insurance company. The check was made out to us and our mortgage company. The mortgage company made us endorse the check and send it to them. They then sent us a check for $10,000. When the repair work was completed, they sent us the remainder. We have received a 1099-Misc from the mortage company. This shouldn't be considered income, per IRS Publication 525. I contacted the mortgage company to see if they could rescind the 1099 and they said they were correct in sending it to us because they actually paid us the money. What can I do to keep from paying tax on this?