Tax Season Begins, but Some Must Wait to File Taxes

At the start of 2011, the IRS has announced that needs additional time to update tax processing systems, due to Congress’ late approval of an updated tax code. This means that an estimated 50 million taxpayers may have to wait until mid- to late-February in order to file taxes and receive a refund.

Many taxpayers expecting a tax refund this year, will want to file their taxes early. Unfortunately, taxpayers who itemize their deductions on Form 1040 Schedule A – both electronic and papers versions — will need to wait. Taxpayers may have to wait if they itemize deductions including charitable donations, medical and dental expenses, or if they are claiming the Higher Education Tuition and Fees Deduction or the Educator Expense Deduction. More information on exactly who this delay will apply to can be found in the IRS press release.

The IRS has said they intend to work with the tax software industry to minimize delays. Already TurboTax announced that its customers can e-file taxes with their company starting January 6, and it will hold onto the filings until the IRS systems update has completed. Check out our reviews of additional top efile tax software and find the tax software that’s right for you or your business.