Tax refunds delayed
Wed, 16 Jan 2013 00:41:03 GMT —
If you are expecting a big tax refund this year, you will have to wait a little longer.
The IRS won't be accepting tax filings until January 30th this year, thanks to the eleventh hour tax deal in Congress.
Some may have to wait even longer.
"A lot of forms are delayed until March 15th or even later especially when it comes to amortization, depreciation, said Dale Haworth, who owns four H&R Block tax preparation offices in the Rio Grande Valley.
While normally your refund is directly deposited into your bank account within seven days, Haworth says plan on it taking up to two weeks.
"It may be even longer because of the great influx of returns that will hit, Haworth said.
Not only does this delay affect families but the tax business itself.
"There's 105 active days in the tax season that has been reduced to 85 days because of this delay. So a lot of tax prep companies are probably going to experience some cash flow problems because clients like to put tax filing fees on refunds, and since the refund won't be here until February, it may hurt some tax prep companies, Haworth said.
If you have resisted filing your taxes online, you may have to convert this year.
"They would like to do everything electronically so this year the rules are they don't want you sending in a return unless you file an affidavit showing the reasons why, Haworth said.
Fortunately tax credits on children, education, and even energy efficient appliances apply this year, and the standard deduction has actually gone up $100.
For the average tax payer it will be the same this year as it was last year, Haworth said.
Haworth also says the IRS may extend the tax deadline of April 15, but the IRS has yet to make an official announcement.