Delayed Tax Filing for Some Taxpayers

Three federal tax deductions were recently reinstated, thanks to tax law changes enacted a few weeks ago. Because of late Congressional action to enact these tax law changes, certain taxpayers will need to wait to file until mid- to late February.

IMPORTANT: the delay is for filing taxes, but you can begin preparing your taxes at any time. It is essential that taxpayers provide 2010 tax information to their preparers as soon as it is available. The sooner the returns are prepared, the faster your preparer will be able to file your returns when eligible.

Taxpayers will need to wait to file if they are within any of the following three categories:

• Taxpayers claiming itemized deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses, and state and local taxes.
  
  
• Taxpayers claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students covers up to $4,000 of tuition and fees paid to a post-secondary institution. However, the IRS emphasizes that there will be no delays forthose claiming education credits, including the American Opportunity Tax Credit and Lifetime Learning Credit.
  
  
• Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23, and Form 1040A, Line 16.

The delay affects both paper and electronic filing of returns for those falling into one of the three above categories. The IRS emphasizes that electronic filing of returns is the fastest, best way for those affected by the delay to get their refund.