The Bipartisan Budget Act caused the Internal Revenue Service to allow three popular tax benefits to be claimed retroactively. Most of these benefits expired in 2016 but can be claimed in 2017. The Internal Revenue Service’s system has been reprogrammed to accept these benefits.
The first benefit is exclusion from gross income on the discharge of indebtedness on a qualified principal residence. In other words, if you sold your home, for less than full value, and it was your principal residence, the amount you do not repay the lender does not need to be included in your income. If you are eligible for this benefit, you will need to not only meet the requirements, but fill out Form 982.
The second benefit is claiming mortgage insurance premiums that are treated as qualified residence interest on schedule A. This benefit is generally claimed by low or middle income filers. To claim this benefit, use Schedule A.
The third benefit signed retroactively into law is the deduction for qualified tuition and related expenses. There is a calculation to determine how much money can be claimed. To determine your eligibility, fill out Form 8917.
If you have already filed your return, and did not claim one of these benefits, and are eligible to claim one or more benefits, you can file an amended return on Form 1040X. Currently amended returns are taking about sixteen weeks to process.
The lawyers at Camden & Meridew, P.C. are experienced in the areas of tax law, family law, litigation, consumer law, criminal law, and bankruptcy. You can learn more by calling Julie Camden at 317-770-0000 or completing our online contact form today.
This website supplies general information about the law but it is provided for informational purposes only. This content does not create an attorney-client relationship and more importantly is not meant to constitute legal advice. You should not act on any of the information contained herein without first consulting an attorney.