Notable extensions, new return deadlines among things to know for tax timeWORTHINGTON — As a result of late action taken by Congress to approve an American Taxpayer Relief Act for 2013, many of the forms people use to figure individual and business taxes aren’t yet available, and likely won’t be for a few more weeks.
By: Julie Buntjer, Worthington Daily Globe
WORTHINGTON — As a result of late action taken by Congress to approve an American Taxpayer Relief Act for 2013, many of the forms people use to figure individual and business taxes aren’t yet available, and likely won’t be for a few more weeks.
Larry Iten, a 31-year tax associate with H&R Block of Worthington, said approval of the tax act on Jan. 2, caused the IRS to “rewrite a tremendous amount of software,” thereby causing delays with forms.
While 30 tax forms have yet to be released — including the often-used depreciation and amortization form, residential energy credits and mortgage interest earned — Iten said people may still stop in to get the rest of their taxes prepared.
Among the notable extensions made by Congress this year are the educator expense deduction, which allows K-12 educators to claim up to $250 in expenses; tuition and fees deduction of up to $4,000; itemized deduction for sales tax in lieu of state income tax; and tax-free rollovers of up to $100,000 from IRAs to qualified charitable organizations.
H&R Block has already filed tax returns for some of its 1040 filers, although U.S. Treasury funds are not expected to be issued by direct deposit or check until mid-February at the earliest. Typically, Iten said tax refunds are issued starting around Jan. 20.
“You get your money that much faster, or you have time to save your pennies (by doing taxes early),” he added.
The IRS announced it will begin processing individual income tax returns on Wednesday.
Farm and business tax return deadlines have been shifted back this year, also because certain forms are unavailable. Instead of the usual March 1 deadline, Iten said the farm tax deadline has been moved to April 15, the same deadline in place for all other tax filers.
“Most farmers come in for pre-tax (meetings) in November,” Iten said, adding that with the extended deadline, he anticipates having a lot of work to do right up to the end of the tax season. Iten handles nearly all of the farm clients at the local H&R Block office, and has appointments booked into early April already.
H&R Block has eight tax preparers in its Oxford Street office, and people are welcome to call them for an appointment at 376-4108. Clients must bring all of their income forms, business and farm expenses, home interest information, license plate tax information, charitable contributions, union dues and other forms necessary to complete the taxes.
“Things change from year to year,” said Iten, adding that it’s a good idea for a tax professional to look over a return.
While there were few tax law changes enacted in 2013, one thing wage earners may have noticed is that their payroll deductions have increased a little.
More money is being taken out of paychecks for Social Security and Medicare. In 2011-2012, the rate was reduced from 7.65 percent to 5.65 percent, and at the start of 2013, it returned to the 7.65 percent rate, Iten said.
Daily Globe Reporter Julie Buntjer may be reached at 376-7330.