California 2013: Mortgage Forgiveness Debt Relief
On July 21, 2014, Governor Brown signed Assembly Bill 1393 retroactively extending California’s partial conformity to the federal exclusion of income on the discharge of qualified mortgage debt for tax year 2103. For additional information, see Mortgage Forgiveness Debt Relief Extended Through 2013.
Certain California customers, who paid state tax on the forgiveness of qualified mortgage debt, may need to file an amended state return.
TurboTax has updated the product to handle this change in the California law.
How to tell if you may be impacted
You may be affected if all of the following apply to you:
- You filed your 2013 California state tax return prior to August 14, 2014 AND
- You had a cancellation of debt on a personal residence in 2013 AND
- Your California return included a Schedule CA (California Adjustments) with an amount on line 21f (cancelled debt income)
If you are affected, you may have overpaid your state tax. You may need to amend your California return
To amend your return:
- Follow these step-by-step instructions.
- After you make the changes to your tax return, you will need to mail a copy of your amended state return.
- Your printed return will include instructions on how and where to mail it.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the California 2013: Mortgage Forgiveness Debt Relief