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Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Valued Pioneer
Posts: 3
Registered: ‎03-24-2014
Accepted Solution

Corrected 1098s Received for Prior Years - Which Yr-Ver Software Should I Use for Amended Returns

[ Edited ]

I have received two CORRECTED 1098 Mortgage Interest Statements from 2010 and 2011 for a rental property which has since been sold.  They both represent increases in reported mortgage interest paid. To file the federal & state amended returns involved, should I use the tax software for those years, or the current (2013) Tax Cut software?  I have been using TaxCut software in all applicable years, including the most recent 2013.

 

I should mention that passive activity loss carryover is involved.  The 1098s will each change the accumulated losses on the property which will then affect the capital loss on the property when it was sold.  So these amended returns have to "talk" to each other... 

 

I'm not even sure if I can open my 2010 and 2011 returns in the 2013 version of the Tax Cut software....

Associate (Neighbor)
Posts: 473
Registered: ‎03-17-2013

Re: Corrected 1098s Received for Prior Years - Which Yr-Ver Software Should I Use for Amended Return

Hi, casduser, and welcome to the Community.

 

You'll need to use the software corresponding to each year to amend that year's return.  Thus you'll use the 2010 software for the 2010 amendment and the 2011 software for 2011, etc.

 

The PALs would not carry over unless you started a brand new return for the later years, which I don't recommend.  Instead, manually correct them.  Go slowly, and focus on the 2010 return (since that's the one coming up against a deadline).  Then do 2011.  Personally, I'd wait until 2010 is processed before sending in the 2011 amendment.  

Valued Pioneer
Posts: 3
Registered: ‎03-24-2014

Re: Corrected 1098s Received for Prior Years - Which Yr-Ver Software Should I Use for Amended Return

[ Edited ]

'Makes sense, and helpful advice.  Thanks!

 

Can you by any chance point me directly to the forms, worksheets & entries that need overriding and will reflect the new carryovers.  I guess I can probably dig through the Schedule E stuff & find them.   'Seems like I've encountered some tedium & confusion once or twice before with these passive loss carryover amounts year-to-year when I've needed them for one reason or another.

Associate (Neighbor)
Posts: 473
Registered: ‎03-17-2013

Re: Corrected 1098s Received for Prior Years - Which Yr-Ver Software Should I Use for Amended Return

It's probably just the Schedule E and Form 8582, but some of the info may be on the worksheets within the program.  If you're using the installable software, right click and choosing "Jump to Related" is often helpful (but sometimes gives either too much or too little).  

 

When I actually do an amendment for a client that's not trivial, I always review each page and compare it to the original return.  This not only helps me make sure I got everything right, but identifies which forms need to be mailed in (err on the side of too much), and which need to be identified in the explanation of changes.