On December 27, the IRS announced that despite recent changes to the Alternative Minimum Tax (AMT) law, the vast majority of taxpayers can begin filing in mid-January. Unfortunately, as many as 13.5 million may have to wait as the IRS reprograms its systems to account for the new law. The individual AMT laws, intended in 1969 to affect only the wealthy, have not been adjusted to account for inflation. As a result, the AMT potentially affects more taxpayers each year. To remedy this, Congress has passed a patch for the last several years to minimize the effect of the AMT. However, this year's patch was late enough in the season that it will affect the IRS's readiness to process tax returns and pay refunds.
Although the IRS is asking certain taxpayers to wait until February 11th to file, H&R Block customers can file now - depending on your tax situation, we will hold your return securely and file them automatically when the IRS is ready.
Taxpayers who use the following forms will be affected:
Form 8863, Education Credits
Form 5695, Residential Energy Credits
Schedule 2, Form 1040A, Child and Dependent Care Expenses
Form 8396, Mortgage Interest Credit
Form 8859, District of Columbia First-Time Homebuyer Credit
All other e-file and paper returns will be accepted starting as scheduled in January. The IRS urges affected taxpayers to file electronically in order to reduce wait times for their refunds. Taxpayers who e-file and use the direct deposit option get refunds in as little as 10 days, while paper returns take four to six weeks.
Wont hurt me... Does it you?
