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How do I amend my 2017 taxes to claim an exclusion for cancellation of debt income on my home?

The Bipartisan Budget Act of 2018 extended the tax break for canceled debt to apply to 2017 taxes. The bill was passed by Congress and signed into law in February of 2018 after many of our customers had already filed their 2017 returns. If you already filed, you can amend to claim this benefit.

If you already filed your tax return and reported mortgage forgiveness (Form 1099-C) that qualifies for mortgage debt relief, you can choose to amend your return to claim an exclusion.

When you amend for this in TurboTax, we’ll complete Form 982 and include it with your return.

Some states also have a tax break for exclusion for cancellation of debt. If you filed a state tax return and your state conforms to the federal law changes for exclusion for cancellation of debt, check if this applies to you and amend your state tax return as well to take this tax break.

Keep in mind: You have 3 years from the date you filed your 2017 return (or 2 years after you paid the tax due, whichever is later) to file an amended return, which means you don't have to get it done by the April 17 filing deadline.

  1. Sign in to your account.
  2. Scroll down to under Your tax returns & documents and select Amend (change) return, then Start amending my 2017 return.
  3. Select TurboTax sent me an email or notice as the reason you’re amending and Continue. (Even if you weren’t contacted by us, this option will help if amending for a tax extender.)
  4. Then, choose Tax extenders, Continue, and answer the questions that follow.
  5. On the screen named Here are the tax extenders that may benefit you, select Revisit next to Canceled Debt on Your Main Home (1099-C) under Your Home.
  6. Go through the screens and enter the 1099-C information for your main home.
  7. When you’ve finished, we'll tell you how to print and mail your amended return, since amendments can’t be e-filed.

  1. Open the return you want to amend.
  2. Before you go further, make sure your return is exactly as it was when you originally filed it.
    • If you made changes after you filed or mailed, undo them. We suggest comparing your onscreen numbers with a paper copy of your filed return.
  3. Now, make an "amend" copy your return by selecting Save As (Mac - select Duplicate) from the File menu. This preserves the originally-filed return.
    • Name the copy to distinguish it from the original, e.g., 2017 Amended Smith B Form 1040 Return or similar.
  4. You should now be working in the amend copy. Inside your program, search for “amend” and then select “Jump to amend” (on Mac you’ll be there right away).
  5. On the We'll help you change (amend) your return screen, select Continue.
  6. On the next screen, answer “Yes” and select the “I was contacted by TurboTax…” option. (Even if you weren’t contacted by us, this option will help if amending for a tax extender.)
  7. Go through the screens and answer the questions.
  8. Then, on the screen named Here are the tax extenders that may benefit you, select Revisit 1099-C (Canceled Debt on Your Main Home) under Your Home.
  9. Go through the screens and enter the 1099-C information for your main home.
  10. When you’ve finished, we'll tell you how to print and mail your amended return, since amendments can’t be e-filed.

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