The IRS announced on February 22 that its processing systems have been reprogrammed to handle the three benefits most likely to be claimed on returns filed early in the tax season. These benefits have been renewed as part of the Bipartisan Budget Act, enacted on February 9.
As a result, you can now file returns claiming:
- Exclusion from gross income of discharge of qualified principal residence indebtedness (claimed on Form 982),
- Mortgage insurance premiums (PMI) treated as qualified residence interest (claimed on Schedule A), and
- Deduction for qualified tuition and related expenses (claimed on Form 8917)
The IRS continues to update its systems for the other tax benefits extended by the new law.
Taxpayers who have already filed their 2017 federal tax return and now wish to claim one of these renewed tax benefits can do so by paper filing an amended return on Form 1040X.
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