Though you should be aware of these breaks for your wealthy clients, the benefits may not affect many. For example, the extension of mortgage insurance premiums and qualified tuition deductions are subject to income phase outs, said Aaron Blau, a CPA in Tempe, Ariz.
“The credit for non-business energy property has … been around for quite a long time. Many taxpayers have already hit their lifetime maximums,” he noted.
Not to mention the confusion and scrambling of preparers and taxpayers when extenders were made retroactive a month into the new year—and after a new filing season had begun. “Even with plentiful opportunities, Congress gave us no indication that they were interested in extending these provisions, so practitioners were not giving advice to clients to prepare them to take advantage of them,” Blau said.
Your HNW clients who already filed 2017 returns but who didn’t take advantage of extenders may want to file an amended return to claim any missed credits or deductions, Mari advised.
Your clients can file (but not electronically file) an amended federal return using Form 1040X. The IRS said these amended returns may take the IRS up to 16 weeks to process.
This article was provided by Bloomberg News.