- Days left

Seal It With a Kiss: IRS to Start Processing Itemized Returns on Feb. 14

The IRS has set its delayed date for processing taxes as February 14.Even though the IRS officially declared tax season open, millions of taxpayers weren't sure when they would be able to file their returns because of the last minute tax deal. Now the IRS has declared Feb. 14 -- Valentine's Day -- as the start date for processing tax returns.

Beginning then, the IRS will begin processing paper and e-filed federal income tax returns for taxpayers claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on federal form 8917, and the educator expenses deduction. Before that date, those taxpayers may prepare their returns, but the IRS will not accept or process them.Early estimates were that as many as 50 million taxpayers could be affected by the delay, but the IRS now estimates that the number is closer to 9 million. The revised number is based on the timing of similar tax returns filed by mid-February 2010.

Taxpayers who aren't affected by the delay -- largely, those who do not itemize their deductions -- constitute the largest percentage of taxpayers. Those taxpayers may begin filing their returns immediately.

Many tax software packages, including those sold by TurboTax and H&R Block, have announced that they will prepare any affected returns immediately and hold the returns until the Feb. 14 processing date. Many paid preparers will similarly hold your return for you -- be sure to ask upfront if this is something you're concerned about. If your software package or preparer doesn't offer this service, you can still begin preparing your return, but you'll need to wait until Feb. 14 to send your return to the IRS.

The IRS delayed the processing dates because it needed the extra time to update its systems after Congress pushed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 through at year's end. As a result of the new law, a number of tax provisions that had previously expired at the end of 2009 were renewed -- in the nick of time -- for 2010. Ultimately, that's a good thing for taxpayers -- even if it does mean a little bit of a wait.

Increase your money and finance knowledge from home

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Intro to different retirement accounts

What does it mean to have a 401(k)? IRA?

View Course »

TurboTax Articles

What Are the Tax Penalties for Smokers?

Starting in 2014, the Individual Shared Responsibility provision of the Affordable Care Act made you responsible for having minimum essential coverage, or MEC, in health insurance. Otherwise, you need to be eligible for a health care exemption, or you could pay a penalty when filing your income tax return. This requirement for minimum essential coverage applies to smokers and nonsmokers alike. If you're not covered by an employer's health plan and are a smoker, you can go to the health care marketplace to find MEC. If you're still unable to comply, you may have a penalty applied.

A Brief History of Income Taxes

Did you know President Abraham Lincoln, one of America's most beloved leaders, also instituted one of its least liked obligations - the income tax? In this brief history of taxes, see the historical events which shaped income taxes in the United States today.

How to Itemize Taxes When Claiming Dependents

Claiming dependents and itemizing deductions is an effective way to save money on your income taxes. Each dependent you claim allows you to reduce your taxable income by one exemption. Get a step-by-step overview on how to take advantage of itemizing your taxes when claiming dependents in this article on tax tips.

Add a Comment

*0 / 3000 Character Maximum