Monday, December 27, 2010

New Tax Law Means Some Will Have To Wait Until At Least February To File 2010 Tax Returns

The IRS released an announcement on their website December 23 that states that while many taxpayers will be able to file when they normally do, others will have to wait while the IRS reprograms its computers to allow for some of the provisions in the tax law signed by President Obama December 17.

The affected tax filers include those who wish to claim any of the following deductions on their tax returns:
  • The Higher Education Tuition and Fees Deduction covering up to $4,000 in tuition and fees paid to a post-secondary institution.  This is claimed using Form 8917 and can particularly help people who don't qualify for education credits or who live in a state where the deduction will reduce state tax as well as federal tax and may thus be worth more than the credit.  Those who claim the American Opportunity Tax Credit or the Lifetime Learning Credit are not impacted by the delay described here.
  • The Educator Expense Deduction, which allows kindergarten through 12th grade educators to deduct up to $250 in out of pocket expenses directly on Form 1040 or 1040A without itemizing deductions.
  • Everyone who files Form 1040 Schedule A to itemize deductions such as mortgage interest, state and local income, sales, and/or property taxes, charitable contributions, employee business expenses, and more.
More information is available in the IRS announcement available at,,id=233449,00.html?portlet=7

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