If you're one of the 13 million Americans who file for tax credits, you will have to wait if you're expecting a return.
"Anybody's who's got dependent care expenses for their kids. If they put their kids in day care, then they won't be able to file their return," says Joe Angelico, district manager with H&R Block.
He says there will be a delay because of Congress' last minute decision to change the Alternative Minimum Tax (AMT). It's a tax that dates back almost 40 years.
"In 1969 there were about 155 Americans who made over $200,000 a year who weren't paying any income tax at all because of their deductions and credits they were allowed," Angelico said.
The AMT was enacted to change that, and target those high-income households. But Angelico says AMT was never adjusted for inflation, so today it's hurting many tax payers.
"The problem is with everything else on our tax forms, it's all indexed for inflation. So your personal exemption goes up, the standard deduction goes up, AMT was not indexed for inflation," Angelico said.
Tax payers were starting to feel the AMT pinch and people who file for credits like education, residential energy, mortgage interest, homes in Washington D.C. and the millions of people who file for child care credits would have all paid more taxes if Congress didn't change AMT exemptions. But there is one problem: Congress acted so late that it takes the IRS about seven weeks to reprogram their computers and get forms reprinted for tax season 2007.
Now people filing for those credits will have to make a decision: Wait until after February 11 to file taxes or file now without including the credits and then go back and file an amendment.
Whatever the decision, people will have to wait a little longer for your return because the IRS will not process the forms until February 11th.
Tax preparers say most South Mississippians file for credits like child care and education. You aren't required to file those credits but it does increase your return. Leaders say people should sit down with their accountants to figure out their best option.
For more information on the alternative minimum tax visit the http://www.irs.gov/newsroom/article/0,,id=176605,00.html.
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