The IRS announced that they will begin processing tax returns that contain Form 4562 for Depreciation and Amortization starting February 10th. This is earlier than expected.
They also announced they will start processing returns containing Form 8863 Education Credits starting on February 14th. This form is used to claim two higher education tax credits – the American Opportunity Tax Credit and the Lifetime Learning Credit.
They also indicated that all remaining forms that they have not released yet will be available the first week of March. The list includes forms for claiming the residential energy credit and also general business credits.
For Iowa tax returns, the legislature has passed a bill to conform all federal changes except for bonus depreciation. The bill is expected to be signed by the Governor. A few of the items affected by the bill include:
-Section 179 depreciation – Iowa now adopts the federal $500,000 limit for 2012 and 2013.
-The above the line deductions for educator expenses and college tuition.
-The optional deduction for state and local sales taxes.
And of course, don’t forget that there are only 62 days left till April 15th!
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.