Congress has recently re-instated deductions and credits that had been previously disallowed. The following credits and deductions have been reinstated retroactively for 2018 and reenacted for 2019 returns. If you are eligible for any of these for the 2018 tax year, you will have to file an amended return for 2018 to claim the credit/deduction and receive your refund.
Credit for Non Business Energy Property: If you made any energy efficient improvements to your primary residence you may qualify for a credit worth up to 10%of the cost of the improvement. There are caps ranging from $50.00 to $300.00, depending on the type of improvement you made, with an overall lifetime limit of $500.00. Qualified improvements include windows, exterior doors, furnaces, boilers, air conditioners and water heaters.
Tuition and Fees Deduction: This allows a deduction of up to $4,000.00, subtracted directly from your income, for eligible tuition and fees paid for you, your spouse or dependents. In some cases, this deduction is more beneficial than claiming an education credit, and offers some benefit for those that may not meet certain qualifications to take the credits.
Private Mortgage Insurance: Before the tax cuts took place, PMI was deducted on Schedule A along with mortgage interest. Many taxpayers may now be able to amend their 2018 to itemize deductions with the addition of the PMI premiums they paid in 2018. The amount of PMI paid for the year is reported on your 1098 form by your mortgage company. This may or may not be beneficial, depending on the amount of total deductions, however, it is worth looking into amending if you paid PMI in 2018.
We will be reviewing our client files as we prepare their 2019 tax returns to evaluate who may benefit from filing an amended return for 2018. If you had your 2018 return prepared elsewhere, feel free to bring your 2018 return and documents to CMS Tax Plus for a free evaluation by one of our outstanding tax professionals!