Tax Season Starts in Feb for Some Taxpayers

[sk8rmom]

<p>Tax Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid- to Late February</p>

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The start of the 2011 filing season will begin in January for the majority of taxpayers. However, last week’s changes in the law mean that the IRS will need to reprogram its processing systems for three provisions that were extended in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17.</p>

<p>People claiming any of these three items — involving the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A — will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.

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<p>[Tax</a> Season Starts on Time for Most Taxpayers; Those Affected by Late Tax Breaks Can File in Mid- to Late February](<a href=“http://www.irs.gov/newsroom/article/0,,id=233449,00.html?portlet=7]Tax”>http://www.irs.gov/newsroom/article/0,,id=233449,00.html?portlet=7)</p>

[kelsmom]

<p>Thank you for posting this. Folks, do a GOOD estimate of your taxes & then file the FAFSA with “will file.” Once you have filed your taxes, update your FAFSA.</p>

[_rentof2]

<p>I also read that there’s no reason you can’t “do” your taxes as early as you want – only that you don’t send them to the IRS until they’re ready to process them. That still makes you “Will File” with regard to the FAFSA, but it doesn’t mean you’re working with estimates when you fill it out.</p>

<p>That is, if you have everything you need (W-2s, 1099s, etc.) to complete your taxes fairly early in the year. I know we never do, so we’ll be working with estimates. :p</p>

[allstarcheer]

<p>I have a question about using estimates. I’ve always waited until I have everything and can do my taxes because our EFC is too high for any need-based FA. The FAFSA is really just a formality so that DD1 gets her merit aid. Now DD2 is off to school next fall and I think our non-merit-covered costs are going to (just maybe) be higher than our EFC. I’d like to file the FAFSA with estimates now and then follow up once I have my tax act together. When you do that, do you just use last year’s return, assuming that you had no material changes in 2010? Just want to make sure I’m doing this right since it’s new for me this year.</p>

[swimcatsmom]

<p>Just use your most accurate estimate. If things have not changed substantially from last year, then last years would be the easiest way to go. If there are substantial differences you are aware of then tweak the numbers to reflect that. </p>

<p>There is really no right or wrong way to estimate the numbers, except that the more accurate the estimate is the more realistic any tentative offers based on those estimates will be.</p>