January 30, 2011
Tax Return 2010 – Changes on filing 2010 tax returns
Changes on filing 2010 tax return might affect millions of taxpayers. These changes are due to passage of tax legislation last December and caused some delays; these delays didn’t allows the IRS to receive filed tax returns and requires them to re-programming their computer to update its system to some changes that happen to tax returns.
Here are some changes on filing 2010 tax returns:
• Date of receiving filed tax returns – According to the IRS, for those taxpayers who itemize their deductions, they may file their returns until mid-February both by mail or e-fling. The deadline for filing a return was April 15, 2011. Since, the date was hit by legal holiday on Washington DC called Emancipation Day the deadline was moved on April 18.
• Filing Electronically – In previous tax season almost 70 percent of taxpayers uses the IRS e-filing system. E-filing can lessen the stress brought by documents and computations instead of manual filing you can choose e-filing service provided by the IRS or tax software vendors. This is fast, safe and more accurate. If you choose the electronic filing plus direct deposit, you can receive your refunds in not more than ten days. By e-filing, you may receive notification came from the IRS saying that they received your returns. If ever your returns were rejected, the IRS will also explain why your return was rejected, how you can fix it and then ask you to resubmit it.
"The positive part of everything going electronic would be there is no paper wasted," Mize said. "The biggest change could be that within one to two years all returns will be done digitally."
"You can e-file through your tax preparer, commercial tax preparation software or through Free File, which is found on the IRS main site," Mize said.
• New Tax Deductions – This new tax laws might give benefits to your 2010 tax returns. Under these new tax laws, if a taxpayer who lives in the state without any sales tax might end paying federal sales tax.
Look for Schedule A, Line 5 on your forms to check if you’re eligible.
The IRS makes an announcement saying that there are no more delays for parents and students who file tax returns for higher education tax credit of up to $4,000. See this Form 8917.
For kindergarten to teachers on 12th grade they can submit a report for expenses that is out of pocket for the benefits of their students. The amount that is deductible for those expenses is $250. See 1040 Form, Line 23 and 1040A Form, Line 16 for further information.


