My 2020 return has been filed and accepted. I subsequently received an additional 1098 for mortgage interest. Do I need to amend 2020 or can I put this aside for 2021?

[ErnieS0 · Accepted solution]

It depends. First the IRS does not allow you to report 2020 items on a 2021 return so you will not be able to add that Form 1098 to next year’s taxes.

For this year, amending depends on whether the Form 1098 will give you an additional refund.

If you itemized deductions, adding additional mortgage interest will give you a bigger refund unless your interest deduction is limited by the size of your mortgage deduction. You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017.

If you took the standard deduction, you will only get refund if adding the additional Form 1098 allows you to itemize deductions.

A good way to check is to go through the amend process anyway. If there is no change in refund, then there is no need to file an amended return. Amended returns are scheduled to be available in TurboTax after March 18.

Click here for help: How do I amend my 2020 TurboTax Online return?

[Edeborah60]

Help, 2020 Amend. $4232 mortgage interest . Where do you add it.

[AmyC]

@Edeborah60    If the additional amount will help your tax situation, you will want to amend your tax return. 

Once your original return is accepted and the finances are settled, you can file an amended return. 

• Save a copy of the original return before doing an amended return. See: 
  • how to file an amended return.
  • I need to amend my state return.
  • Can I e-file my amended state return?
  • Can I e-file my 1040X to amend my return?
• Pay additional tax. Taxpayers who will owe more tax should file Form 1040-X and pay the tax as soon as possible to avoid penalties and interest. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account for free.
• Use separate forms if amending more than one tax year.
  • Each year on its own form
  • Each year in its own envelope
• Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return?  Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.

[Ericl1334]

So will I incur a penalty if I do not file this 1098 form?

[VolvoGirl]

No.  If you got a 1098 for mortgage interest it is only a Deduction on schedule A If you itemize.  If it will increase your deductions or make your Itemized Deductions more than the Standard Deduction you can amend your return to include it.  

[Ericl1334]

So it would be good for me to do an amended return and include it? Will the irs do a second refund based on it or hold my initial refund?

[MichaelG81]

No, for Mortgage Interest 1098 it is an itemized deduction only if you did not take the standard deduction; you will not get penalized. If you itemized it will help your bottom line. If not, it probably will not affect the outcome of your taxes, you do not get penalized for not adding a deduction.

Here is a tool to see if you have to amend from the IRS.

@Ericl1334

[Ericl1334]

Ok yea I took the standard so I guess I will just file it away since if I am understand correctly it won’t affect my refund