Tuesday, February 1, 2011

Tax Time--For Me If Not For the IRS

I was so proud of myself--I got my taxes done and e-filed by January 31st (a personal speed record for me, even knowing that I was getting money back). Furthermore, I went with TaxAct, which allowed free preparation and filing with no income restrictions. (Most of the sytems that let one prepare and file for free have a top income level of $58,000.)

And just to sweeten the pot, I entered TaxAct through My Points and got an additional 400 points.

Mine is not a complicated tax return, but I do itemize my deductions, and I have to file a Schedule E for my rental income. Not a problem for TaxAct.

But the IRS is apparently having some issues.

I just got a notice that my return won't actually be e-filed until February 14th because the IRS isn't sure how certain tax reforms will affect returns. ARRGH! None of the reforms affect me, so I would like it if they would just go ahead and give me back my money.

Which, by the way, is some $1500 this year. (I am a tad confused by that since my income and deductions are pretty much the same this year as last, and yet I got only $500+ back last year--not, mind you, that I'm arguing with that!)

How come the one year I get my act together early is the one year the IRS is late????

Good thing I'm not a conspiracy theorist!

15 comments:

Anonymous said...

That lame excuse the Feds gave you, is just that. A lame excuse. Uncle Sam doesn't have the money yet to pay the refunds. It has to borrow them from the Chinese. Logistics.

slugmama said...

Actually, because of the lateness of the legislation that was signed in mid Dec. affecting tax laws, the IRS doesn't have the software set up in it's internal system yet to process returns that include form 8917(higher ed. tuition deductions), educator expense deductions, or any form filing that includes a Schedule A(itemized deductions). Schedule As are filed by millions of filers alone so many are affected.

Carol said...

It was announcd some time at the end of 2010 that the returns of taxpayers who itemize would not be processed till after February 15. The reason given was the tax provisions passed by the "lame duck" Congress in late 2010. The IRS needs time to incorporate them into their systems.

Grace. said...

Thanks for the explanation, folks.

But I don't have to be happy about the delay, do I?

judy said...

I was one of the lucky ones who was able to file. But I don't use a schedule A so that may be why.

On a good note if you are having it direct deposited the turn around time for mine was 7 days.

Judy

Sharon said...

Oh Grace, I read about that in the Washington Post. Which is why I'm waiting for the 15th. Wish it had worked for you, hopefully you are getting a ton of cash back! :)!

Grace. said...

Apparently everyone knows about this delay except me. I should pay more attention to the news, which I would if it weren't all so depressing!

Lisa @Cents To Save said...

Glad you are getting a refund Grace! My daughter tried to file two days ago and was told it couldn't be done until after Feb 14th.... Now after reading the responses here, I know why.

MasterPo said...

Be happy they are still giving cash refunds. IMO it won't be long before they stop that. Probably not all at once. More likely if you expect a refund over X-amount it willbe as a "credit" towards next years taxes. Already being done by many states.

Grace. said...

Master Po? I know many states, including mine, ALLOW one to use a refund to prepay next year's taxes. But I know of none that require it. Am I wrong about that?

MasterPo said...

I'm pretty sure CA doesn't give cash refunds anymore. They can't afford it. And the idea was at least floated last year by NY and several other states last year too.

Petunia said...

MasterPo, I live in California and received a refund last year. The state has not made any announcements about not paying refunds this year.

So Grace, why is your refund larger this year? Did you have additional dependents? Did you have larger rental expenses? If it were me, I would want to know.

Grace. said...

My actual income stayed the same this past year, but my taxable income decreased some due to increased 401(k) payments and a loss on my rental (which usually makes me money) due to the new roof. I assume that's the reason for the difference.

Glen said...

Grace - If you had rental income loss this yesr and a gain last year, then your refund will the higher....Do note thought that replacing a roof increases your basis, and you can only write off (depreciate) the "expense" over 27.5 years. Thus a $5000 roof replacement would only generate $182 write off in 2010 if placed in service the full year (completed 1/1/2010).

Petunia said...

Update - I e-filed my income tax returns on Monday, Feb 14th. My California refund hit my bank account yesterday, Feb 19th. All $817 of it.