In December 2019, new retroactive tax changes were signed into law. This new act, named the Secure Act, affect 2018 tax returns. You may need to amend your 2018 tax return to receive a tax refund due to these tax law changes. Here are some highlights of the tax changes:
» Itemized Medical Deduction deduction threshold has been reduced to 7.5% from 10% of Adjusted Gross Income through 2020. This may result in a larger itemized deduction for you on your 2018-2020 tax returns.
» College Tuition Write-off has been extended through 2020. If you had college tuition costs, you may receive a deduction or credit for tuition paid.
» Mortgage Debt Forgiveness has also been extended through 2020. If you had home mortgage debt forgiven in 2018 and had to pay tax on this debt forgiveness, you can benefit by amending your 2018 tax return to recoup this tax paid.
» Similarly, if you paid Mortgage Insurance Premium on your home mortgage, this is now a deduction for 2018 – 2020 tax returns. You will need to amend your 2018 tax return to claim this deduction and get a tax refund.
» The Home Efficiency Tax Credit is also back for 2018. If you made qualifying Home Energy improvements, you are able to take this tax credit.
There are several other provisions to the tax law change that may affect your 2018 tax return. Consult with your tax professional to determine if you are affected by this tax law change and whether you would benefit by amending your 2018 tax return.