Forgot to include HELOC interest on my 2023 taxes - can I claim unclaimed 2023 mortgage interest on 2024 return?

Thanks for the info! Quick question - I've heard some tax software makes amending returns pretty easy now. Do you think it's something I can handle myself, or should I go to a professional? Also, is there a deadline for filing the 1040-X for this?

Most tax software does make amendments fairly easy, especially if you used the same software for your original return. You can definitely handle it yourself if your tax situation is otherwise straightforward. The software will walk you through entering the additional mortgage interest and recalculate everything. For the deadline, you generally have 3 years from the original filing date to amend a return and claim a refund. So for a 2023 return filed in 2024, you'd have until April 2027 (though I wouldn't wait that long).

How does it work with amended returns specifically? I've got a similar situation but with some capital gains I forgot to include. Does it actually fill out the 1040-X for you or just tell you what you need to do?

Sounds interesting but I'm always skeptical about these tax tools. How accurate is it with more complex situations? I had a rental property last year and wonder if it can handle Schedule E stuff too.

It doesn't complete the 1040-X for you, but it gives you detailed guidance on exactly what needs to be changed, including the specific line numbers and amounts. It made the process much clearer than trying to figure it out on my own, and saved me from making mistakes. For more complex situations, I found it handles rental properties and Schedule E really well actually. My brother has two rental units and it caught a depreciation error he made that even his previous accountant missed. The document analyzer is particularly good at spotting items across multiple forms.

How does this actually work? I don't understand how they get you through to the IRS faster than calling directly. Seems too good to be true.

Sounds like a scam to me. Nobody can "get you through" to the IRS faster. They probably just charge you money to call the same number you could call yourself. I'd be very cautious about services claiming they have special access to government agencies.

It's not magic - they use an automated system that navigates the IRS phone tree and waits on hold for you. Then when an agent actually picks up, they call you and connect you. I was skeptical too, but it's basically just saving you from sitting on hold for hours. They don't have any special access - it's just technology that handles the waiting part. I spent almost 3 hours on hold myself before giving up, but with Claimyr I was talking to an agent in about 15 minutes of my actual time.

Oh crap, I didn't even think about that. My HELOC was mainly used for kitchen and bathroom renovations, but I did use about $10k of it to consolidate some credit card debt. Does that mean I can only deduct part of the interest?

Yes, you would only be able to deduct the portion of interest that corresponds to the home improvement expenses. The IRS expects you to track this and allocate the interest accordingly. For example, if 80% of your HELOC was used for the renovations and 20% for credit card debt, you could only deduct 80% of the interest paid. You'll need to keep good records showing how the money was used in case of an audit.

Yes! I e-filed an amended return through TurboTax last year and it was processed in about 12 weeks. Way better than the 16+ months my paper amended return took during COVID. Most tax software supports e-filing 1040-X forms now.