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IRS Announces Important Updates

January 21st, 2011

If you usually turn in your tax returns far in advance of the deadline, don’t be too hasty this year- you might not be allowed to file your return yet. The IRS recently announced that, due to late changes to the tax law in 2010, certain tax filers will have to wait until mid- to late February to file their tax returns. Tax filers must wait to file their returns if they fall into any of the three following categories:

  • Taxpayers claiming itemized deductions on Schedule A. The itemized deductions on Schedule A include mortgage interest, charitable donations, medical and dental expenses, and local and state taxes. The local and state taxes deductions were extended in the recently-enacted Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
  • Taxpayers claiming the Higher Education Tuition and Fees Reduction. This deduction, claimed on Form 8917, covers up to $4,000 of tuition and fees that parents and students pay to a post-secondary institution. However, there will be no delay for tax filers claiming other education credits, such as the American Opportunity Tax Credit, which allows college students who have completed at least 100 hours of community service to receive a $4,000 tax credit.
  • Taxpayers claiming the Educators Expense Reduction. This deduction refunds K-12 educators for out-of-pocket expenses of up to $250.┬áThe educator expense is claimed on Form 1040, Line 23, and Form 1040A, Line 16.

The IRS has delayed the filings of several other forms as well, including the forms for small business owners, first-time homebuyers, and the owners of electric vehicles. If you have any questions or concerns about filing your tax returns this year, contact the experienced tax attorneys at Walsh and Company, P.A. by calling (410) 312-5690 and setting up an appointment.

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