Tax Deal Means Delay In Some IRS Tax Forms
Republicans and Democrats have come to an agreement on a tax deal as we head into 2011. The IRS is warning that it will need to update some of its forms before taxpayers can file in 2011.
The Bush Tax Cuts were the big subject in political circles as we came to the end of 2010. Would they be allowed to expire? Would they be extended? What about unemployment compensation? The questions were endless and we all awaited something spectacular to happen. Well, nothing really did. They Bush Tax Cuts were extended a few years and so were unemployment compensation programs.
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The new tax deal did, however, have an impact on one group – the IRS. January is the kickoff of the new tax season when businesses and taxpayers all start doing their taxes for the previous year. This includes, obviously, the preparation of various tax forms. The IRS is warning that this could be a problem in January 2011 as a number of the tax forms in question now have to be changed given the new laws.
The first form is simple. For those who itemize their deductions on Schedule A of their 1040, there will be a delay till the middle of February before the form is ready. The same is true for anyone claiming the Higher Education Tuition and Fees Deduction on Form 8917 or Educator Expense Deduction on line 23 of your 1040. The new tax laws tweak these items, which means the forms have to be modified. This is true whether you are filing electronically or via paper.
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The tax deal at the end of 2010 is receiving a lot of attention for a number of reasons. The November election was supposed to be one that would bring change to Washington D.C., specifically financial restraint. Instead, we appear to have another case of politicians saying anything to be elected and then doing something else. The new tax deal provides an extension of the tax cuts we’ve become use to, but adds another $700 billion to the national debt. Ultimately, this debt will kill our nation. It is unfortunate that our political leaders seem determined to drive this country off a fiscal cliff.
That’s how most dominant countries ultimately fail.