Ed Bove's College Planning Blog

California Dreamin' on Such a Winter's Day

While it's tempting to escape the next snow storm, the last thing I wanted to do on Monday was sit on a plane for six hours.

Why?  A couple of reasons.

First and foremost, it was my birthday.  And who wants to spend their birthday traveling across the country alone.  Certainly not me.

Secondly, I'm right in the thick of pulling together everyone's financial aid forms, which need to be filed by the end of the month.  And losing a week in that process is not a great thing.

So, for me to get on that plane to California, it must have been for something really important.  And it is!!!

I can't get into too much detail at this point, but when I return there will be lots to tell.  In fact, what comes of these next few days are going to turn the college planning world on its ear.

Don't mean to be cryptic, but that's all I can say at this point.  Stay tuned....it'll be worth the wait!

Late Tax Law Changes Will Delay Some Returns

The IRS has announced a delay in the start of tax season for some individual taxpayers affected by the Tax Relief Act of 2010. This delay affects individual taxpayers who itemize deductions, claim tuition and fees deduction, or claim the educator expense deduction. The delay affects both paper-filed and e-file returns. (For a complete list of forms, see Forms Affected By the Extender Provisions below.)

The IRS is asking preparers to wait for the IRS prescribed start date – mid-to late February 2011 – before e-filing these returns; returns submitted on paper prior to the IRS prescribed start date will be ‘shelved’ and processed later than returns filed on or after the start date. IRS e-file is the fastest, best way for taxpayers affected by the delay to get their refunds.

For more details from the IRS, visit the following link: http://www.irs.gov/newsroom/article/0,,id=233449,00.html

Forms Affected By the Extender Provisions:

Taxpayers must wait to file if they are affected by any of the tax credits or deductions that expired at the end of 2009 and were renewed by the 2010 Tax Relief Act, enacted Dec. 17.

The delays affect taxpayers claiming: 

• Itemized deductions (claimed on Schedule A of Form 1040)
• Tuition and Fees Deduction (claimed on Form 8917)
• Educator Expense Deduction (claimed on Form 1040, line 23, or Form 1040A, line 16)
• Casualties and thefts (claimed on Form 4684)
• District of Columbia First-Time Homebuyer Credit (claimed on Form 8859)