Feature Articles
Learning for Better Living
Will the AMT delay your refund?
Reviewed and adapted with special permission from the IRS by: Andrew Zumwalt, Personal Financial Planning, College of Human Environmental Sciences, University of Missouri-Extension
Some early filers may have to wait a few extra weeks for their refunds. The delay is due to the Alternative Minimum Tax (AMT) legislation enacted in December 2007.
Most tax filers will not be affected by the AMT legislation. The delays in processing and refunds will be experienced only by those who include any of the following five forms with their 2007 individual income tax return:
- Form 8863 http://www.irs.gov/pub/irs-pdf/f8863.pdf, Education Credits
- Form 5695 http://www.irs.gov/pub/irs-pdf/f5695.pdf, Residential Energy Credits
- Schedule 2, Form 1040A http://www.irs.gov/pub/irs-pdf/f1040as2.pdf, Child and Dependent Care Expenses for Form 1040A Filers
- Form 8396 http://www.irs.gov/pub/irs-pdf/f8396.pdf, Mortgage Interest Credit
- Form 8859 http://www.irs.gov/pub/irs-pdf/f8859.pdf, District of Columbia First-Time Homebuyer Credit
If you are filing using one of the five affected forms you won't be able to send your return to the IRS for a few weeks until the IRS computers are reprogrammed for the late tax law change. The IRS expects to be ready for these returns by February 11.
Filing electronically is the best option for everyone, including people impacted by the AMT changes. Whether or not your return claims an AMT related credit, filing electronically results in faster refunds and fewer errors. When you e-file combined with direct deposit you can expect your refund in as little as 10 days. Refunds from paper returns typically take four to six weeks.
For the latest information on the AMT, e-file, direct deposit and other tax matters visit the IRS website at IRS.gov.
Links:
- Alternative Minimum Tax (AMT) - How it Affects Filing Season 2008 http://www.irs.gov/newsroom/article/0,,id=176605,00.html
- Forms & Publications http://www.irs.gov/formspubs/index.html
- 1040 Central http://www.irs.gov/individuals/article/0,,id=118506,00.html
Resource: IRS TAX TIP 2008-04
 |
Site Administrator: |
|
|
|
Last update: Tuesday, January 15, 2008
