The IRS said on Monday that processing of tax returns claiming education credits will begin by the middle of February.
Taxpayers using Form 8863, Education Credits, can begin filing their tax returns after the IRS updates its processing systems. Form 8863 is used to claim two higher education credits: the American Opportunity Tax Credit and the Lifetime Learning Credit.
The delayed start will have no impact on taxpayers claiming other education-related tax benefits such as the tuition and fees deduction and the student loan interest deduction, the service added. People otherwise able to file and claiming these benefits can start filing January 30.
The IRS added that it discovered during testing that programming modifications are needed to accurately process Form 8863. Filers who are otherwise able to file but use the Form 8863 will be able to file by mid-February, and no action needs to be taken by the taxpayer or their tax professional.
Typically through the mid-February period, about 3 million tax returns include Form 8863, less than a quarter of those filed during the year.
The IRS said it “remains on track” to open the tax season on January 30 for most taxpayers, including those claiming the student loan interest deduction on the Form 1040 series or the higher education tuition or fees on Form 8917, Tuition and Fees Deduction.
5 Comments
I know for those anticipating a refund, this delay is extremely inconvenient. One thing to remember is that there isn't a reduction in preparation time, only time to file. Taxpayers who are affected by this can get their documentation together and even get it to their preparer if they are using one. It is much better to wait until the system is ready for the schedule than to try to do it early and have to clean up the mess that results...
Posted by: TCBTAX | January 30, 2013 11:43 AM
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I'm surprised at the comments pointing their fingers at the IRS. Granted the IRS lacks urgency on most issues concerning U.S. taxpayers but this fiasco is the direct result on the politicos in Washington. Their desire to make a 'theatrical production' over tax law changes, concessions, etc. should have been completed months ago so let's point the finger at Uncle Sam where it belongs. Hopefully the IRS will now get off their behinds and get this tax season rolling!
Posted by: mtocpa | January 29, 2013 1:39 PM
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Well..thats another "mess IRS got us into".
Not only they force us to be super humans, they knock us down any possible way they can.
Sahme on you IRS
Posted by: Saint4949 | January 29, 2013 11:58 AM
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The IRS should have open the tax filing season in the middle of February, so the process can be successfully, and all the knots are out. The tax returns that are already e-filed, should they be questioned??? This tax season is so so crazy for all.
Posted by: NICKIE | January 29, 2013 11:49 AM
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Are you kidding me?!? What's next. We're going to end up with one week to prepare tax returns before the April 15th deadline. This just gets more and more absurd every year. Busy season is tough enough without all of the delays and procrastination of Congress, President Obama and the IRS. What can we do to protest this lack of efficiency? I just don't get it!!
Posted by: Brad B | January 29, 2013 10:44 AM
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