AMT Fix Passed by Congress : Your Refund May be Delayed
Congress passed legislation in late December that will shield many middle-income taxpayers from the Alternative Minimum Tax (AMT). While it is definitely good news that a large number of people will pay less taxes, the bad news is that millions of people will have to wait until February 11th to file their tax returns, so their refunds will be delayed.
It is estimated that without the legislation, up to 20 million families would have been subject to the AMT at an average increased tax burden of $2,000.
The delay will affect folks who have to file forms 8863, 5695, 8396, 8859 or 1040A schedule 2. The IRS' computers won't be reprogrammed until then to accept the revisions to these forms, so refunds won't be available until late February for these taxpayers.
To read more, click here.
P.S. If you are receiving a large tax refund, you are essentially giving the government an interest-free loan over the course of the year. My suggestion is to review your withholding allowances to withhold less taxes from each paycheck. The IRS has a worksheet that will help you. To use the calculator, you can visit the IRS website by clicking here.
It is estimated that without the legislation, up to 20 million families would have been subject to the AMT at an average increased tax burden of $2,000.
The delay will affect folks who have to file forms 8863, 5695, 8396, 8859 or 1040A schedule 2. The IRS' computers won't be reprogrammed until then to accept the revisions to these forms, so refunds won't be available until late February for these taxpayers.
To read more, click here.
P.S. If you are receiving a large tax refund, you are essentially giving the government an interest-free loan over the course of the year. My suggestion is to review your withholding allowances to withhold less taxes from each paycheck. The IRS has a worksheet that will help you. To use the calculator, you can visit the IRS website by clicking here.
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