Tax Season Filing Delayed for Some Taxpayers | Tax Tip of the Week | No. 76

Due to the late December passage of the 2010 Tax Relief Act, the IRS recently announced that some taxpayers will need to wait until mid-to late February to file their returns.Those affected by this delayed processing of tax returns are:- Those taking the state and local sales tax deduction vs. the state/local income tax deduction on Schedule A.Note: The option of adding the sales taxes paid on the purchase of a new car to the state and local sales tax deduction was not extended.- Taxpayers claiming the Higher Education Tuition and Fees Deduction.  Those claiming the American Opportunity Credit and Lifetime Learning Credit for higher education expenses are not affected by delayed processing.However, you should look at all three treatments of higher education expenses to optimize the best choice.- Taxpayers claiming the Educator Expense Deduction.  This is for kindergarten-12th grade educators with out-of-pocket classroom expenses up to $250.We urge all of our tax clients to continue to bring us your tax information as soon as you are ready.  We will monitor when the IRS will accept these returns and will e-file as soon as possible.FYI: Paid Preparers are now required to e-file all federal and Ohio individual tax returns.  Although, we have been e-filing over 95% of the individual tax returns we prepare for the last 10 years.As always, give us a call if you have any questions. You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.Rick Prewitt - the guy behind TTW...until next week.