Should I amend my taxes? I received a notice saying "Recent 2018 Tax Law Changes May Give You a Tax Break" but I don't know if I should amend. What does this include?

[Qrious1]

I have the same question and mine is related to the qualified energy efficient improvements I made in 2018.  Should I amend my 2018 taxes or can I eventually carry over this credit into my 2020 taxes?  What are my options?

[DawnC · Accepted solution]

You could have received the email for a number of changes.  

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extended several tax benefits to apply to 2018. The bill was passed by Congress and signed into law in December of 2019, after many taxpayers had already filed their 2018 tax year returns.

Amending your 2018 taxes is optional, but if you're expecting a refund as a result of the Act, you can amend your return and claim the refund. You have 3 years from the date you filed your 2018 return (or 2 years after you paid the tax due, whichever is later) to file the amendment.

These credits and deductions were extended retroactively to 2018

• You can claim Mortgage Debt Exclusion/canceled debt on main home
  • If you already filed your tax return and reported mortgage forgiveness on your main home (Form 1099-C).
• You can claim Mortgage Insurance, MIP/PMI (on first or second home)
  • If your AGI is under $54,500 for married filing separately or $109,000 for everyone else, and you’re itemizing or would itemize by including your MIP/PMI.
• You can claim the Tuition and Fees Deduction (for qualifying education expenses)
  • If your AGI is under $80,000 for single/head of household or under $160,000 if you’re married filing jointly, and if it benefits you more than – or you didn’t qualify for – the American Opportunity Credit or Lifetime Learning Credit.
• You can claim energy credits if you have (one or more)
  • Residential Energy Credits (includes $500 Energy-efficient Home Improvement credit and Geothermal/Small Wind Residential Energy credit)
  • The Two-wheel Plug-in Electric Vehicle Credit
  • The Alternative Motor Vehicle Credit
  • The Alternative Fuel Vehicle Refueling Property Credit

@Qrious1    For the energy credits, they need to be claimed in the year you made the expenditure.  If you made energy efficient improvements to your home like energy-saving roofs, windows, skylights, and doors, you'll still be able to claim the Nonbusiness Energy Property credit for 10% of amounts paid for qualified energy efficiency improvements up to a lifetime cap of $500 or in fixed dollar amounts ranging from $50 to $300 for energy efficient property, including furnaces, boilers, biomass stoves, heat pumps, water heaters, central air conditioners, and circulating fans.

If the energy improvement was made in 2018, you will need to amend your 2018 tax return to claim the credit.   

[TomYoung]

@Qrious1 

"Should I amend my 2018 taxes or can I eventually carry over this credit into my 2020 taxes? What are my options?" 

You must amend your 2018 taxes to claim the credit.  If you don't do that then you have no credit to "carry over" to 2020 taxes.  You can't simply claim a 2018 tax benefit in 2020.