The IRS began accepting the last group of forms impacted by late tax legislation today, Monday, March 4.

This includes:

• Residential Energy Credit(Form 5695) – This tax credit may save you up to $500 if you purchased energy efficient windows, doors, roofs, and insulation.
• Mortgage Interest Credit (Form 8396) –  Lower income individuals may receive an additional tax credit for part of their home mortgage interest paid.

Most of the other forms are related to business tax credits or tax credits and deductions that impact more complex tax returns.  For a complete list of forms please see the IRS list of forms.

Have any of the forms mentioned?  If you do, don’t worry.  TurboTax is up to date with all tax law changes, so you can file today and feel confident that you will get every tax deduction and credit you deserve.

The IRS began accepting tax returns for the vast majority of taxpayers on January 30. As of today, March 4, the IRS began accepting and processing all 2012 tax returns..

Have a question?  Only TurboTax lets you talk to CPAs, IRS enrolled agents, and tax attorneys while you prepare your taxes, free.

Updated February 8, 2013

The IRS opened its doors today, officially kicking off the tax season!

With 80 percent of taxpayers getting a tax refund and the average federal tax refund last year topping $2,700, there is no reason to wait to file.

But what if you have questions?  Just give us a call or chat with us – our experienced TurboTax tax professionals are here for you. Only TurboTax lets you talk to CPAs, enrolled agents and tax attorneys while you prepare your return, free. We’ll even help you get started and we’re there when you need it

To help you get started, our tax experts can answer some of your most commonly asked questions:

How does the fiscal cliff or recent tax law changes affect my taxes?

Don’t worry!  Recent changes to the tax law will not impact the vast majority of people’s tax refunds for 2012. This is because Congress extended all of the existing, family-friendly provisions.

You can still claim the Earned Income Tax Credit, Child Care Credit, Teachers Deduction and more!

IRS Update:  The IRS announced today that they are now able to process tax returns that contain form 8863 with Education Credits beginning February 14^th.  Form 8863 is used to claim two higher education credits — the American Opportunity Tax Credit and the Lifetime Learning Credit.

The IRS has also announced that on February 10^th, they will begin processing tax returns that contain Form 4562, Depreciation and Amortization

Please read the full IRS announcement here.

Will the new healthcare reform changes impact my 2012 taxes?

Good news!  The requirement to purchase health insurance does not impact your 2012 or 2013 tax returns. You should know that your 2012 tax return will help determine your eligibility for an insurance subsidy from the government, which will kick in for 2014.

Who can I claim as a dependent?

This is one of our most frequently asked questions. Taxpayers may be surprised to find out that their boyfriend, grandmother or adult child may qualify as a dependent.

Are there tax deductions available for students in college?

The U.S. government provides incentives, in the form of education tax credits and deductions, to help decrease the costs of pursuing a college education. If you paid eligible education expenses for you, your spouse, or your dependent, you may qualify for one of these tax benefits.  In fact, this could be as much as a $4,000 deduction!

Still have questions?  Don’t worry.  We’re here for you to help you get your maximum refund possible and so you can be confident you’re taxes are done right.

The IRS anticipates that it will be able to process tax returns for about 120 million taxpayers, including those affected by AMT, the educator expense deduction, the higher education tuition and fees deduction and the state and local sales tax deduction.

Even though the IRS does not anticipate any tax refund delays due to the week slip in accepting refunds, there are some simple steps you can take to make sure you get your tax refund back as quickly as possible:

1.  File Now!  Don’t wait!

•      TurboTax is up-to-date with all recent tax law changes and has been accepting e-filed tax returns since January.

•    TurboTax will hold and securely submit your tax return to the IRS on a first-in, first-out basis. So filing now puts you first in line for your tax refund.

2.  E-file and Use Direct Deposit

•   E-file and direct deposit are the fastest way to get your tax refund.

•  The IRS does not anticipate any associated tax refund delays once processing begins on January 30. The IRS expects to issue 9 out of 10 tax refunds in 21 days or less.

• The IRS will not process paper returns before January 30.

3.  Get Expert Answers to Your Tax Questions

•     Taxpayers wondering how recent tax law changes may impact their taxes can contact TurboTax tax experts, who are available year round to answer taxpayer questions, free.

•   Only TurboTax lets taxpayers talk to certified public accountants, Internal Revenue Service enrolled agents or tax attorneys as often as they like while they’re preparing their tax return, free.

According to IRS, taxpayers claiming the residential energy credit and businesses claiming depreciation and amortization and general business credit will be able to file tax returns in late February or early March due to additional forms and processing requirements.

There’s no need to wait to file your tax return. Get started now to get a jump on your tax refund.

Where's My Refund

Now we are able to receive confirmation that our tax returns were accepted and receive tax refunds quicker than we did in the days of paper filing, despite IRS processing delays.  Although the IRS has a refund cycle chart with estimates of when your tax refund may be deposited or mailed, per the IRS those dates are strictly estimates based on normal  processing.

You may have heard that the IRS is experiencing some processing delays. TurboTax has been working hard to get an update from the IRS on e-filed tax returns so we can give you the latest information regarding IRS delays.

We just received the following update from the IRS and we wanted to make sure you received the most up to date information.

Some taxpayers who filed electronically and received an acknowledgment from the IRS are concerned when they visit “Where’s My Refund” and are told that IRS has no information regarding their tax return.

The IRS informed us on February 10 that this is a temporary situation and it should be resolved in several days.  At that time, you will be able to get an expected refund date when you visit “Where’s My Refund.”

This is an IRS issue that impacts tax returns regardless of who sends them to the IRS. This is not a TurboTax issue.

If you have received an acknowledgment of your tax return from the IRS, then the IRS assures us they have received your tax return and are processing it.

Information on the status of your tax refund will be updated in “Where’s My Refund” once your tax return processes. This is a temporary situation, and the IRS expects to resolve the matter in a few days.

IRS expects the vast majority of tax refunds to continue to be issued
within the historical range of 10 to 21 days.

The IRS also updated its’ Where’s My Refund site with additional information in a FAQ that may help answer your questions.

We want to quickly share any updates we receive from IRS because we know some of you may be waiting for  your tax refund status and estimated direct deposit date.  We will continue to keep you up to date on any more additional information from the IRS.

As a result of the late-breaking tax legislation signed into law at the end of December, the IRS has announced that taxpayers who itemize deductions and those claiming the Higher Education Tuition and Fees deduction or the Educator Expense Deduction will need to wait to file their 2010 tax return until at least mid-February.

The majority of taxpayers – the more than 60 percent who claim the standard deduction – aren’t affected by the delay and can e-file their return in early January.

IRS Commissioner Doug Shulman said the agency “will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the New Year to get our systems reprogrammed and ensure taxpayers have a smooth tax season.”

Even if you are claiming one of these deductions, don’t wait to start your return. TurboTax products are already up-to-date with all the latest forms and schedules. You can prepare your return with TurboTax and electronically file it beginning on Jan. 6.

TurboTax will securely hold your return until the IRS begins accepting returns impacted by the processing delays. TurboTax will send you an email confirmation that your return has been e-filed and accepted by the IRS.

These delays impact all tax preparation methods and include both e-filed and paper returns.

In the face of these delays, TurboTax is the fastest, easiest way for you to get your full refund. Customers impacted by the delay will see clear, easy-to-understand explanations within TurboTax and will see additional, step-by-step guidance in these areas so you can be confident you’re getting every deduction and credit you’re entitled to.

Wondering if you’re impacted?

• 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.

• 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 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 classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23, and Form 1040A, Line 16.

The IRS expects to soon confirm a specific date when it will start processing tax returns impacted by the late tax law changes.

Check back here for updates.

Click here to find out if your state is also anticipating processing delays.

IRS Commissioner Doug Shulman says “If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.”

All you need to do is update your address and the IRS will send out your check. Undelivered refund checks average $1,471 this year, compared to $1,148 last year. Some people are due more than one check.

You can update your address through the IRS “ Where’s My Refund?” tool on http://www.IRS.gov. The tool also enables taxpayers to check their refund status. You’ll need to submit your Social Security number, filing status and amount of refund shown on your 2009 return. The tool will provide the status of your refund and, when necessary, instructions on how to resolve delivery problems.

Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.

A note of caution: the IRS does not contact taxpayers by e-mail to alert them of pending refunds and that this type of message is a common identity theft scam. The agency urges taxpayers not to release any personal information, reply, open any attachments or click on any links. The best way for you to find out if you have a pending refund is to go directly to IRS.gov and use the “ Where’s My Refund?” tool.

And remember, you can avoid undelivered checks simply by e-filing your tax return and selecting direct deposit. It’s the easiest, fastest way to get your money back. Then you’ll never have to wonder if the IRS owes you money.

I’m not going to be able to file my taxes in time. What should I do?

If you can’t make that April 15 deadline, you are in good company. The Internal Revenue Service says it received requests for 11 million extensions in 2008, which amounts to about 8% of all tax returns. (I was one of them!) Taxpayers who ask for an extension get an extra six months to file—your new deadline in 2010 will be Oct. 15.

You can get some extra time without any hassle. Simply e-file for a Personal Tax Extension of your federal tax return using TurboTax Easy Extension. You can also file for an extension on the IRS website.

But there a few important things to remember when you request an extension. First, a federal extension does not automatically extend the deadline for your state income tax return. To find the extension guidelines for your state, click on this list of state tax websites compiled by TurboTax.

Also, an extension to file your federal taxes does not give you an extension to pay your actual tax bill. You still have to figure out your taxes and make an estimated payment.

Estimating how much money you’re going to owe can take time, so please do not wait until April 15 to get started. Last year’s tax return could be a good starting point if you haven’t experienced any major life changes. If that is the case, you can probably pay the same amount in taxes for 2009 that you paid in 2008. But if you lost your job, purchased a new home with the first-time homebuyer’s credit, or had a baby,  you’ll need more information to determine your tax bill.

Why is it so important to come up with this ballpark estimate? You will pay a penalty if you underpay your taxes by more than 10 percent. Thankfully, TurboTax takes the guesswork out of calculating your estimated payment.

If you are expecting a refund, file your taxes as soon as possible if to get that payment. You risk losing your refund if you fail to claim it within three years of the return due date.

Here is a rundown of why people file late…or not at all.

What do I do if I can’t afford to pay my taxes?

I posed this question to the IRS, and the No. 1 thing to do—even if you can’t pay all the taxes you owe—is to file your return. “If there is one message to get to consumers, I cannot emphasize enough how important it is to file your return,” says an IRS spokesman.

My advice: File your return as soon as possible, preferably before midnight on April 15. Why? Failure to file your taxes is a federal offense that could have significant legal ramifications. And if that isn’t reason enough, another incentive to file your taxes on time is a financial one. That’s because the IRS can impose a penalty of 5% of the tax you owe for each month you do not file your return. The maximum penalty is 25% of your tax bill.

Try to pay as much of the bill as you can. But if you don’t have the cash, you may be able to work out a payment agreement with the IRS. In the past few years, the IRS says it set up installment agreements for 2 to 3 million returns. It should take less than 10 minutes to figure out if you are eligible for an installment agreement on the IRS website.

You can also call the IRS at 1-800-829-1040 to discuss your payment options.

Filers who pay the IRS via an automatic installment plan typically owe less than $25,000. Also, if you are interested in a payment plan, you should be in good standing with the IRS, and you should expect to pay off your bill within five years.

Installment agreements can be costly, so think before you leap. The IRS charges a one-time fee of $105 for setting up the installment plan, or $52 if you have the payments debited directly from your bank account. The interest rate fluctuates, based on the amount you owe. For a sense of how these payment plans work with sample scenarios, look at this IRS page.

If I haven’t closed on my new home yet, can I still claim the first-time homebuyer credit?

Yes. You still have time to get that credit, but you need to act fast. The Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, has been extended. According to the IRS, “an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010.” No wonder you are seeing more “For Sale” signs around town.

So who is eligible? You qualify as a first-time buyer if you have not owned a primary residence during the three years up to the date of purchase. You must also meet certain income restrictions: The credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers. If you qualify, you may be eligible for a maximum tax credit of $8,000.

If you don’t fit the criteria for the first-time homebuyer credit, you could be eligible for a long-time resident credit of up to $6,500. Buyers must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence. In addition, you must buy your new home before May 1, 2010. Or, if you sign a binding contract on or before April 30, 2010, you must purchase or close on the new home on or before June 30, 2010, according to the IRS website.

There is a significant amount of documentation required if you want to receive either of these credits, which is why the IRS doesn’t let you e-file.

The homebuyer credit is a hot topic for 2009. The IRS offers extensive information about the ins and outs of the homebuying credit on its website.

If I was unemployed for part of 2009, is any of my income tax free?

Unemployment benefits are taxable, but you don’t have to pay taxes on the first $2,400 you receive. If you and your spouse are out of work, you can both exclude that first $2,400 in benefits. You should have received a Form 1099-G reporting what you’ve been paid.

If you end up with a big tax bill from your unemployment benefits, consider changing your withholding status for 2010. Fill out Form W-4V to have 10 percent of your benefits withheld for federal income taxes.

There are a bunch of education tax breaks available. What’s the difference and which one should I take?

I hear this question a lot. In fact, I recently got it from a listener on National Public Radio’s All Things Considered. While a tax deduction of up to $4,000 can be claimed for qualified tuition and fees, tax credits usually result in bigger tax savings.

For many people, the American Opportunity Credit will provide the most bang on a tax return because it offers the largest tax break ($2500 for qualified tuition and expenses). It is an expansion of the Hope credit, and it is tied to the economic stimulus package. The income cap for the American Opportunity Credit is higher than other credits, too. The credit can be claimed for tuition and certain fees you pay for higher education in 2009 and 2010. Books and required course materials count as a qualifying expense. Plus, the credit can be claimed for four post-secondary education years instead of two.

If you have brushed up on your career skills, use the Lifetime Learning Credit. It provides a credit of up to $2,000 to cover qualified education expenses, such as job training. And it is applicable for you, your spouse or your offspring. The credit is based on your income—joint filers can’t claim it if their income exceeds $120,000.

If you want to delve into the nuances of the various education-related incentives, this Q&A from the IRS does a terrific job of explaining the differences. I also like this education tip sheet.

Finally, to figure out which educational tax break makes the most sense for you, use TurboTax to compare the impact on your tax return.

Is there anything I can still do to lower my tax bill?

One of the best options to lower your tax bill is to maximize your 2009 retirement savings. For 2009, you can stash up to $5,000 in an IRA ($6,000 for those over age 50). But there are income hurdles to be aware of. You can also buy a new house (above) or contribute to Haiti and Chile relief (below).

I made donations to support relief in Haiti and Chile this year. Can I deduct it on my 2009 taxes?

Yes, assuming you made those donations before March 1 to help Haiti and Feb. 26 for Chile. But pay very careful attention to the news. Pending legislation, which already passed the House of Representatives, is now awaiting approval in the Senate. (It is considered to be a slam dunk, but Congress has been a little tied up with healthcare reform.) There is a good chance Congress will extend the deadline for charitable contributions to Haiti and Chile through April 15. And if that happens, you should be able to use the deduction for 2009 returns.

If I need to amend my tax return, does that need to be done by April 15?

If you sent in your tax return already and realized you forgot to claim something, you can amend your return. (It happens to the best of us: Last year we forgot to include our 529 savings plan contributions on our 2008 tax return.)

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF),Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF). If you used TurboTax to file your return you can follow these instructions to amend your return. To avoid any penalties and interest, you need to file Form 1040X and pay the tax by April 15 of the following year.

If you are filing for an additional refund, the IRS advises you to wait until you have received your original refund.

Intuit is a long-time supporter of free tax preparation and e-filing for low and middle-income taxpayers. We’re in the midst of tax season and folks are searching for the best and least expensive way to file their tax return. The IRS Free File Alliance program is one great way to file if you meet certain requirements.

Intuit is a long-time supporter of the Free File Alliance.  Raphael Tulino of the IRS spent some time explaining who the Free File Alliance solutions will work for, and a bit about what it is. Listen in as Consumerism Commentary podcasting gurus Flexo and Tom Dziubek chat Free File Alliance with Raphael.

TaxCast: The IRS on E-file