Fiscal cliff delays tax season, deductions
Tax season is getting underway a little later this year, as discussions over the fiscal cliff pushed back acceptance dates for the Internal Revenue Service. YNN's Meg Rossman has more from the experts on the changes to expect for this year's tax season.
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BUFFALO, N.Y. — "Tax season normally starts around the 12th of January," Liberty Tax Owner Donette Darrow said.
But not this year for companies like Liberty Tax and H&R Block. Tax season started a little later, thanks to that famous fiscal cliff.
"Taxpayers are going to keep a lot of the deductions and credits that they've grown to love, which is a huge, huge thing," H&R Block District Manager Randy Galley explained.
Galley said some of the Bush Tax Cuts, made permanent by Congress, will mean some big savings for years to come.
"For the average family, that's a savings of between $2,500 and $4,000, which is significant," he said.
But Donette Darrow said there's a downside. With the delay in tax season, also comes a delay in deductions.
"They're going to feel the crunch. They're going to feel it in their wallets," she said.
Darrow said forms for student loan interest, rental property, and education deductions and others could take weeks.
"Some of them will be in around February 15 and some are not going to be available until March."
For those who need a tax return soon, and can't wait for those extra deductions, however, she has a suggestion.
"If that's the case, then if there are forms that are not available now, then possibly you could send a tax return in without them, and then add them as an amendment later on."
Despite the delay, Galley warned not to delay in filing.
"The closer you can get to the front of the line, the faster the IRS will process the refund. So don't wait."