Forgot to file 1098 Mortgage (HELOC 2nd loan) last year, how to fix

[n0taxes]

I started filing my taxes 2023 taxes and wondered if I can file my HELOC 2nd loan.  My 1098 must have posted late last year because I don't remember seeing it to download.  I noticed today there is a 1098 for 2022.  btw, I started my HELOC in 2021. How can I fix this?  Do I have to redo my 2022 taxes?  I did receive a refund last year and I used TurboTax software to file my taxes.

Thanks in advance,

Ron

[KrisD15]

Did you Itemize Deductions (Schedule A) or take the Standard Deduction? 

If you took the Standard Deduction, which most people do, Home Mortgage Interest would not have been claimed. (so nothing would need to be amended) 

If you Itemized, you will need to check  Schedule A  line 8 to see if too much was claimed. 

[Mike9241]

Interest on a HELOC for your personal residence doesn't qualify for a deduction unless it was used to build an addition to the home. if it was, further requirements are that the loan must be secured by the taxpayer's home, not exceed the cost of the home and when combined with other acquisition indebtedness, not exceed the overall limitation on acquisition indebtedness.

if it meets these tests you would have to amend prior year returns.  There may be other situations whereby the interest is deductible so we would need to know what the proceeds were used for to provide an answer. 

[n0taxes]

Thank you for the your answer.  Since I do not need to amend, does that mean I don't have to add the HELOC loan Form 1098 in future filings?

[n0taxes]

Thank you for your help.  in 2021 I used only on my home upgrades.  Last year I used part for home upgrades and some for items not for my home.   I am assuming I should amend and include in 2023 filing?

[Vanessa A]

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.