I didn't put the interest. Amount that I paid on my land mortgage does it make a difference and I've already submitted my taxes what do I do

[prlady10]

I have submitted my taxes already but realized that ididn't correctly enter my land interest that I've paid, how do I fix this.

[MargaretL]

You may want to amend your tax return to see if the interest will make a difference on your tax return; if it doesn't impact your refund, then there's no need to amend it. If it does, you should amend. If your return has been submitted- please wait - if it's rejected for some reason, you can add your interest and re-send the return. If your return has been submitted and accepted- you will have to amend; the return is mailed; takes about 16 weeks to process. Here are amending instructions.

However, I would like to point a few issues with the interest deduction on the land; I hope it will help you determine if you even need to try amending:

Issue number one: You cannot deduct interest on land that you keep for you eventual use and some undermined time in the future or that you intend to build a home on.  However, some interest may be deductible once constructions begins.  You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it's ready for occupancy. The 24-month period can start any time on or after the day construction begins. As a qualified home, the interest paid may qualify as deductible mortgage interest:

1. Federal Taxes
2. Deductions & Credits
3. Your Home
4. Mortgage Interest, Refinancing and Insurance

Issue number two: You can deduct interest on land that you purchased for investment. It is deductible as investment expenses; limited to the investor's net investment income for the year. Any excess interest not deducted in the current year is carried over to future years. 

1. Federal Taxes
2. Deductions & Credits
3. Retirement and Investments
4. Select Investment Interest Expenses