2010 Tax Deadline

Since we are only a few days into the new year, it’s still probably too early for many of us to consider filing 2010 tax returns, even though the 2011 tax season began on January 1st. Every year in the past few years, I waited until the last day, usually April 15th, to mail out our tax forms. This year, I will likely do the same because it looks like we will again owe taxes to the IRS.

If you are one of those who always file taxes on the due date, or for whatever reason, can use a few extra days to prepare your taxes, there’s a good news this year. The IRS yesterday announced the deadline to file 2010 tax returns and we all get an extension. The 2010 tax deadline this year is April 18, 2011, because April 15th is a holiday in D.C.

Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.

Isn’t this nice?

If you anticipate a refund, the sooner you file, the earlier you will receive your refund (the IRS will begin accepting e-file and Free File returns on January 14th). However, for some taxpayers, they will have to wait to until mid- or late February to file their returns due to changes from the Tax Relief Act of 2010. People who need to wait to file their 2010 taxes include:

• Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction that was also extended and which primarily benefits people living in areas without state and local income taxes. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.
• Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit extended last month and the Lifetime Learning Credit.
• Taxpayers Claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23 and Form 1040A, Line 16.

Related posts:

1. 2010 Year End Tax Strategies
2. Big Changes Affecting Your Money Are Coming in 2010
3. Promotions at Brokers for New IRA Accounts before Tax Deadline
4. New Car Buyer Tax Break for 2009
5. 0% Long-Term Capital Gain Tax from 2008 to 2010 for Some Investors

Original Post on The Sun’s Financial Diary

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2010 Tax Deadline

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