Tax Tip of the Week | January 26, 2011
Late Tax Breaks means some must wait until mid-February to file their tax returns.The Internal Revenue Service plans a February 14, 2011 start date for processing tax returns delayed by last month’s tax law changes. For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until February 14 to file their tax returns. 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 under IR-2011-7.
The IRS said taxpayers who will need to wait to file, fit into 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.
- Taxpayers 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 those claiming other educations 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 classroom expenses of up to $250.
We encourage you not to delay bringing in your tax information to us. Our firm is prepared to begin the work on your tax return as soon as it is available and is ready to print the forms when IRS releases approved copies around February 14, 2011.
As always, give us a call if you have any questions.
Questions or Comments?
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Mark Vitek, CPA/PFS, CFP®
…until next week.