We have good news for those of you who have capitalized on these benefits in the past and were concerned that they were going away for good. THEY’RE BACK! And they’re retroactive so you may claim them for tax year 2017!
These claims include:
- Exclusion from gross income of discharge of qualified principal residence indebtedness (often, foreclosure-related debt forgiveness), claimed on Form 982,
- Mortgage insurance premiums treated as qualified residence interest, generally claimed by low- and middle-income filers on Schedule A, and
- Deduction for qualified tuition and related expenses claimed on Form 8917.
After expiring at the end of 2016, on February 9th, the Bipartisan Budget Act renewed for tax year 2017 for a wide range of individual and business tax benefits. These three were the most popularly used benefits to be retroactively reinstated. To view a full-list of the other tax updates that will impact your 2017 tax return, view our Tax Cuts and Jobs Act – What’s Changed? post.
Taxpayers who have already filed their 2017 federal tax return and now wish to claim one of these renewed tax benefits can do so by filing an amended return on Form 1040X. Amended returns cannot be filed electronically and can take up to 16 weeks to process. Contact your CPA if you have questions about this process.
We will continue to keep you updated as we learn more about changes that might impact our clients. If you have any questions on how these benefits may affect you this tax season, please schedule an appointment with one of our tax experts!
**Remember, taxes are due on Tuesday 4/17 this year as they can't be turned in on a Sunday or a government holiday (Flag Day is on 4/16).