IRS Prepares to Process Delayed Forms

IRS Prepares to Process Delayed Forms

by | Feb 10, 2011 | Archives

The Internal Revenue Service plans to begin accepting tax returns with itemized deductions and other delayed forms after 11:00 am next Monday.

In an e-mail alert to software developers, return transmitters, authorized IRS e-file providers and electronic return originators on Wednesday, the IRS advised them that the implementation date for the forms affected by the Extender Provisions and Small Business Jobs Act of 2010 will be Feb. 14, 2011, after the 11:00 am “drain” of the legacy e-file system.

The e-mail alert added that the forms can be transmitted for PATS, or Participants Acceptance Testing, on Feb. 15, 2011, for the 11:00 am drain. However, according to IRS spokesperson Christina D’Amico, the drain, which is essentially a “data dump,” is only a technical process. The IRS will be able to start accepting the forms after 11:00 am on Monday.

The IRS said last month that it would be able to start processing the forms on Feb. 14, but did not specify a time (see IRS to Start Processing Itemized Returns on Feb. 14).

The affected forms include:
  • Schedule A, Itemized Deductions 
  • Form 3800, General Business Credit 
  • Form 4684, Casualties and Thefts 
  • Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (Page 2) 
  • Form 6478, Alcohol and Cellulosic Biofuel Fuels Credit 
  • Form 8834, Qualified Plug-in Electric and Electric Vehicle Credit 
  • Form 8859, District of Columbia First-Time Homebuyer Credit 
  • Form 8910, Alternative Motor Vehicle Credit 
  • Form 8917, Tuition and Fees Deduction
  • Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit

If you need assistance in getting your return prepared for Monday, please contact my office.

Are Your Social Security Benefits Taxable?

Are Your Social Security Benefits Taxable?

by | Feb 8, 2011 | Archives

The Social Security benefits you received in 2010 may be taxable. You should receive a Form SSA-1099 which will show the total amount of your benefits. The information provided on this statement along with the following seven facts from the IRS will help you determine whether or not your benefits are taxable.

  1. How much – if any – of your Social Security benefits are taxable depends on your total income and marital status.
  2. Generally, if Social Security benefits were your only income for 2010, your benefits are not taxable and you probably do not need to file a federal income tax return.
  3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.
  4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.
  5. You can do the following quick computation to determine whether some of your benefits may be taxable:
    • First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.
    • Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
  6. The 2010 base amounts are:
    • $32,000 for married couples filing jointly.
    • $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year.
    • $0 for married persons filing separately who lived together during the year.

For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Call my office for more details or help.

Use Your Federal Tax Refund to Buy Savings Bonds

Use Your Federal Tax Refund to Buy Savings Bonds

by | Feb 7, 2011 | Archives

You can buy Series I U.S. Savings Bonds with a portion or all of your federal tax refund for yourself or anyone. Series I bonds are low-risk bonds that grow in value for up to 30 years. While you own them they earn interest and protect you from inflation.

Here are six things the IRS wants you to know about using your federal refund to purchase savings bonds.
  1. You may use a portion of your refund to purchase up to $5,000 in U.S. Series I Savings Bonds for yourself or anyone.
  2. The total amount of saving bonds purchased must be in multiples of $50. Any portion of your refund not used to buy savings bonds will be deposited into another financial account – such as a checking or savings account or can be mailed to you as a paper check.
  3. Paper bonds will be issued in your name or the name you designate as primary owner, co-owner or beneficiary. If you are married and filed a joint return, the bonds will be issued in yours and your spouse’s name. You can also designate a beneficiary or co-owner under this name registration option.
  4. You will receive the U.S. savings bonds in the mail.
  5. Buying bonds with your refund is easy. Just select this option by filing Form 8888, Allocation of Refund (Including Savings Bond Purchases).
  6. Form 8888 has step-by-step instructions on how to select this option and how to specify the amount of your refund you want to use to purchase savings bonds.

For more information about the U.S. Savings Bonds refund option visit the IRS website at http://www.irs.gov/.