Important Update – There are no delays for filing your 2011 taxes. This blog post relates to late legislation in 2010. You can file your taxes now.
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.