The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was enacted on December 17, 2010. Because it was enacted so late in the year, the IRS announced on December 23 that some taxpayers who could benefit from this new tax law would have to delay filing their tax returns this tax season.
This includes taxpayers who are impacted by any of the three tax provisions that expired at the end of 2009 and were renewed by the tax act. The following taxpayers are affected:
Taxpayers claiming itemized deductions on Schedule A. Because the act extended the deductibility of state and local sales taxes, anyone who itemizes and file Schedule A will need to wait until late February to file their returns.
Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction covering up to $4,000 of tuition and fees paid, is claimed on Form 8917. The form is not expected to be ready until late February.
Taxpayers claiming the Educator Expense Deduction. This deduction is for teachers with out-of-pocket expenses of up to $250. The deduction is claimed on line 23 of Form 1040, and the IRS computers will not be programmed to handle this deduction until late February.
The IRS will announce a specific date in the near future when it can start processing tax returns impacted by these recent tax law changes. In the meantime, taxpayers affected by this changes should begin working on completing their tax returns, but should not submit their returns until the IRS gives the go ahead. More information will be available at www.irs.gov soon.
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