If you typically itemize deductions on your returns — and about one-third of all U. Last month, the IRS said it would take longer than usual to process claims because Congress took too long to get around to deciding on how to handle the expiration of the Bush-era tax cuts. Taxpayers who itemize, and those who claim state and local sales-tax deductions, higher-education tuition and fees deductions, and the educator-expenses deduction, will need to wait to file their tax returns, the earliest the IRS anticipates it will be able to begin processing forms.
Submitting online from the comfort of home or at the U. Post Office, taxpayers turned over the complicated forms that tally up either the joyful news that a refund is due or painful reality that even more money is due. Watchdog groups, meanwhile, found the richest Americans are paying a smaller share of the pot than in years past.
According to IRS data analyzed by the Tax Foundation, the top 1 percent of earners paid 38 percent of all federal individual income taxes, a decline from when the same group paid more than 40 percent. Citizens for Tax Justice, which looks at all taxes paid including federal, state and local taxes, said that in the top 1 percent of earners will pay This includes taxpayers impacted by any of three tax provisions that expired at the end of and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of enacted Dec.
Those who need to wait to file include:. 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 that was also extended and which primarily benefits people living in areas without state and local income taxes.
Because of late congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February. 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 extended last month and the Lifetime Learning Credit.
In addition to extending those tax deductions for , the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act also extended those deductions for and a number of other tax deductions and credits for and such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses.
The Act also provides various job creation and investment incentives including percent expensing and a two-percent payroll tax reduction for Those changes have no effect on the filing season. The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the recent tax law changes.
In the interim, taxpayers affected by these tax law changes can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes. Additional information will be available at www. For taxpayers who must wait before filing, the delay affects both paper filers and electronic filers.
The IRS urges taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax law changes and ensure accurate tax returns. Additional details about e-file and Free File will be announced later this month. The IRS is also continuing to focus on taxpayer service. On November 27, , the IRS issued the much-anticipated, follow-up b guidance in the form….
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Under a federal statute enacted decades ago, holidays observed in the District of Columbia have an impact nationwide, not just in Washington D. Although Emancipation Day is on April 16, , the holiday will be observed on the preceding non-holiday day April 15, By law, filing and payment deadlines including the deadline for making IRA contributions that fall on a Saturday, Sunday or legal holiday are timely satisfied if met on the next business day April 18th, As a result, all taxpayers, nationwide, have until April 18, to make Traditional and Roth IRA contributions for tax year Thank you for your interest.
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