While most taxpayers are not going to be affected, the IRS estimates that 3 to 4 million taxpayers will have to wait until February 11th to file their tax returns.
If you include any of the five forms listed below, the IRS won't process your return until February 11:
- Form 8863 - Education credits
- Form 5695 - Residential energy credits
- 1040A, Schedule 2 - Child and dependent care expenses credit
- Form 8396 - Mortgage interest credit
- Form 8859 - D.C. first-time home buyer credit
- File electronically! Taxpayers who file electronically and setup direct deposit of their refunds can expect to see their money in as little as 10 days. So if you have to wait, you can still have your refund by the end of February.
- File an amended return. If you are desperate for your refund, file your return omitting the forms affected by the delay and then amend your return later to claim the remaining refund. This is not the recommened method because some taxpayers will forget or figure the additional amount is not worth the added paperwork and cost if you use a tax professional to prepare the amended return.
- Use a different form to claim the child care expenses credit. The AMT-related changes affect this credit when it's claimed on Form 1040A. Most tax programs will allow you to opt for the long Form 1040.
- Stop giving Uncle Sam an interest-free loan! This is what your refund represents. You are allowing Uncle Sam to hold on to your money throughout the year for FREE! Simply adjust your withholding so that less money is withheld from your paycheck.
For any questions please email Questions@TheTaxDiva.com
Happy Tax Season 2008!
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