Tax Filing Deadline Extended…Some Taxpayers Must Wait to File

The normal tax filing deadline falls a little later than usual this year. Because April 15 falls on a Friday that happens to be a holiday in some states, the IRS has extended the deadline to the next business day, April 18. Of course, extensions until mid-October are easy to obtain…and for many people it makes more sense to file on extension. I’ll post something in March explaining why it often makes sense to NOT file by the normal deadline.

On the other side of the coin, some individuals MUST wait to file until mid-February. As a result of tax law updates made very late in the year — the final bill modifying the 2010 tax law wasn’t passed until December 17 — some taxpayers will have to wait longer than usual before filing their returns. An IRS release outlining who is affected is quoted below. The largest group impacted will be people who itemize their tax deductions–generally, this is people who have mortgages, and some other groups with large deductible expenses. These individuals and others affected by the late changes will have to wait until mid- to late-February before the IRS will accept their returns.

Some taxpayers – including those who itemize deductions on Form 1040 Schedule A – will need to wait to file. This includes taxpayers impacted by any of three tax provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those who need to wait to file include:

  • Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes (add link to Schedule A). 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.
  • Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. 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.
  • 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

 

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