IRS News Release: Tax Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid-to Late February
Announced January 20, 2011 - Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction.
As a result of the December 17, 2010 tax law changes, the Internal Revenue Service announced on December 23, 2010 that the upcoming tax season will start on time for most people, but taxpayers affected by three recently reinstated deductions need to wait until mid- to late February to file their individual tax returns.
Due to late tax breaks certain filers will have to wait until Mid-to Late February to file their tax return. Taxpayers will need to wait to file if they are within any of the following three categories:
- Taxpayers claiming itemized deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 enacted Dec. 17, which primarily benefits people living in areas without state and local income taxes and is claimed on Schedule A, Line 5. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid-late February.
- Taxpayer claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students -covering up to $4,000 of tuition and fees paid to a post-secondary institution-is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.
- Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket expenses of up to $250. The educator expense is claimed on Form 1040, Line 23, and Form 1040A, Line 16.
People claiming any of these three items will need to wait to file their tax returns until tax processing systems are ready. The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by the tax law changes. The IRS needed the extra time to update its systems to accommodate the tax law changes without disrupting other operations tied to the filing season.
Additional Information:
- IRS to Start Processing Delayed Returns on Feb. 14; Most People Unaffected and Can File Now (added 1/20/11)
- IRS Kicks Off 2011 Tax Season with Deadline Extended to April 18; Taxpayers Impacted by Recent Tax Breaks Can File Starting in Mid- to Late February
- Tax Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid- to Late February
- Forms Affected By the Extender Provisions
No comments:
Post a Comment