Tax Tip of the Week- Late Passage of Bush Tax Cut Extension by Congress Will Delay IRS Processing of Refunds

The IRS has announced that due to the tax law changes enacted by Congress and signed by President Obama in late December some tax filers will need to wait until mid-to late February to file their tax returns in order to give the IRS time to reprogram its processing systems.

The new law extended certain provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that was enacted December 17^th. Those who need to wait to file include:

• Taxpayers claiming itemized deductions on Schedule A. These include those deducting medical expenses, property & sales taxes, home mortgage interest and charitable contributions.
• Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction is for parents and students who claim the $4,000 deduction rather than claiming an Education Credit.
• Taxpayers claiming the Educator Expenses Deduction. Educators in kindergarten through 12^th grade may deduct out-of-pocket classroom expenses of up to $250.

The IRS has also announced that taxpayers will have until Monday, April 18^th to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday in the District of Columbia, falls on Friday, April 15^th. Taxpayers requesting an extension will have until October 17^th to file their 2010 tax returns.