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Some Taxpayers Must Wait to File

JANUARY 2011

Published in the Clarion-Ledger.  Written by Cassandra Mickens

Most Mississippians can begin filing their 2010 individual income tax returns today, but others will have to muster a little more patience.

Some taxpayers must wait until mid- to late February to file electronic or paper returns while the Internal Revenue Service reprograms its computers to reflect the tax changes enacted by Congress last month.

Dee Stepter, IRS spokeswoman for Mississippi, said taxpayers claiming itemized deductions on Schedule A must wait to file. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses and state and local taxes.

The late start to the filing season will affect an estimated one-third of U.S. taxpayers who itemize rather than claim the standard deduction, which is $11,400 for a married couple filing jointly and $5,700 for individuals.

Taxpayers claiming the higher education tuition and fees deduction, which covers up to $4,000 of tuition and fees for college, must wait as well. However, there will be no delays for parents and students who claim other educational credits, including the American Opportunity Tax Credit and the Lifetime Learning Credit, Stepter said.

Kindergarten through 12th-grade teachers must delay filing their educator expense deduction, which covers out-of-pocket classroom expenses up to $250.

Cardoza Middle School teacher Zira Washington said the delay will hurt many teachers who plan their budgets in anticipation of a tax refund.

"We got paid Dec. 17 and we don't get paid again until the end of January," Washington said.
She said she will wait to file because on a teacher's salary, every dollar is important.
Teachers depend on that money for not only their personal expenses, but also to do things for students and their classrooms, Washington said.

Recent changes to the Small Business Jobs Act of 2010 will affect taxpayers claiming General Business Credit and First Time Homebuyer Credit.

Stepter said a filing date will be announced as soon as the IRS is ready to accept returns. She encourages taxpayers to use e-file rather than paper forms to submit returns to expedite processing and refund check distribution.

"We don't have a specific start date yet," Stepter said. "(Taxpayers) can go ahead and start working on their returns, but they may have to wait to send them because we're not able to input the data."
Jan Lewis, a tax partner at Jackson accounting firm Haddox Reid Burkes & Calhoun, agrees with Stepter, saying taxpayers shouldn't put off gathering information.

"It's a great help to the taxpayer and the tax preparer to gather as much information as early as possible," she said. "Even if the forms are delayed, the accountant can key in as much information as they can."

Buck Coats, a tax partner at Ridgeland accounting firm Horne LLP, said he expects a significant number of submitted returns in a short period of time once the IRS sets a date.

"Hopefully, it won't by too much of a strain on the resources of the Treasury in processing those returns, but it could cause some minor delay," he said.

The filing deadline has been extended three days to April 18 in observance of Emancipation Day in the District of Columbia on April 15.