The Internal Revenue Service (IRS) has announced 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. In addition, taxpayers who itemize deductions on Form 1040 Schedule A will need to wait until mid- to late February to file as well.
According to the IRS Commissioner Doug Shulman. “We 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.”
If you are in one of the following situations then you will need to wait until mid to late February to file your return.
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 which was extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that was enacted on Dec. 17. The sales tax deduction primarily benefits people living in states that do not have state or local income taxes.
Claiming the Higher Education Tuition and Fees Deduction. This deduction is for parents and students and covers up to $4,000 of tuition and fees paid to a post-secondary institution. You must use Form 8917 in order to claim this deduction. 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.
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
According to the IRS Commissioner Doug Shulman. “We 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.”
If you are in one of the following situations then you will need to wait until mid to late February to file your return.
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 which was extended in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that was enacted on Dec. 17. The sales tax deduction primarily benefits people living in states that do not have state or local income taxes.
Claiming the Higher Education Tuition and Fees Deduction. This deduction is for parents and students and covers up to $4,000 of tuition and fees paid to a post-secondary institution. You must use Form 8917 in order to claim this deduction. 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.
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
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