By Kedra Williams
NDG Special Contributor
For most taxpayers, the 2011 tax filing season, which reports income and deductions for the calendar year 2010, began on January 14, 2011. However, tax law changes enacted by Congress and signed by President Barack Obama on December 17, 2010 meant there were taxpayers that must wait until mid- to late February to file their tax returns so that the necessary allowance and extensions can be updated in the IRS systems.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act extended many of the tax provisions set to end in December, 2010. Because these were still technically in affect at the time the Act was passed, there is no residual impact from these changes on this filing season. However, there were three major provisions that were actually expired with the 2009 season that will need implanting for 2010.
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.
- 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.
Even though some taxpayers have expenses that qualify for itemization, in order to itemize using Schedule A, the total deductions must exceed the standard deductions available based on your filing status. For 2010 the standard deductions are: $11,400 for Married Filing Joint Filers; $5,700 for Married Filing Separately or Single Filers, and $8,400 for Head of Household Filers. If your Schedule A Itemized deductions are below these thresholds and you are not affected by the provisions below, your filing deadline will not be delayed.
If you are unsure about how these tax items affect you and your filing deadline you should consult your professional tax advisor.
Kedra A. Williams CPA PC, 3940 St. Francis Avenue Suite 103, Dallas, TX 75228 specializes in complex tax issues and IRS negotiations. Williams can be reached at 469-449-9833 and www.kedrawilliams.com.
