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Get your taxes done using TurboTax
Did you take the standard deduction or itemized deduction? The only way you should amend is if the interest on the amount of the HELOC that was used strictly to buy, build or substantially improve the home for which it is secured by is if you did itemize your return and you still had a tax liability when all was said and done or if it is enough to increase your itemized deductions above the standard deduction, if you took the standard deduction. .
Say your HELOC is $100,000 and you used $30,000 to buy a boat and $70,000 to install solar panels and build a deck, you would only include the interest on the $70,000...So, it would be 70% deductible.
Also, if you did itemize, since this is a new HELOC, the interest is only deductible on the first $750,000 of all loans against the house
You can always go back and see what happens to the numbers if you do amend your previous returns and you can also include it on your 2023 return. If it turns out that you are better off with the standard deduction, TurboTax will choose that instead of the Itemized Deductions. So, without all the numbers, your filing status and several other factors, the best answer is to enter it into TurboTax and see what gives you the best tax situation.
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