Fiscal Cliff Deal Creates Tax Filing Delay
By: Caroline Tucker
Updated: January 9, 2013
The delay in Congress over the fiscal cliff deal has now caused a delay in tax filing.
The IRS has moved the earliest filing date from January 22 to January 30.
It means changes for many taxpayers such as Brighton chiropractor Kristen Lawrenz.
Lawrenz has patience for her clients but when it comes to her tax returns - not as much.
"I am usually the first one my accountant says," said Kristen Lawrenz, an early-bird tax filer.
Lawrenz is one of millions of taxpayers who will have to wait until at least January 30 to file.
"It helps me prepare for 2013 because I pay taxes quarterly since I am self-employed. So to have everything done early gives me an idea of where I stand and how much I have to save for April 15," said Lawrenz.
"[The] IRS isn't expecting returns because of the new fiscal cliff extenders they have put in. It's changing a lot of the forms that we thought were going to come out," said Tom Walpole, CPA.
CPA Tom Walpole says changing forms and computer programs will take some time.
But people who take advantage of things like energy tax credits or teacher deductions could have to wait until February or even longer.
"People that come in to get their refunds done early pay off Christmas bills or pay off vacation, they can't do that as soon as they would like to," said Walpole.
Another group that could be hurt by this - parents with college-bound students.
"The
financial aid forms ask for numbers off of tax return, if the tax
return isn't ready we can't complete the financial aid forms for
college," said Walpole.
Tax deadline is expected to stay the same: April 15.
So while some may wait, the advice is to use the time to get ready to file.
"I will plan and prepare it all until I can send everything in and have it done," said Lawrenz.
Other changes to taxes this year:
Extentions for energy tax credits and teacher supply deductions are included this year.
Also, everyone will start to see slimmer paychecks with the payroll tax increase.
The payroll tax is increasing from 4.2% to 6.2%.
That means if you make $50,000 this year, you will lose an extra $1,000 from your paycheck this year.
For more information you can log on to the IRS websiter here.
