This year, some early filers may have to wait a few extra weeks for their refunds. The delay is due to the Alternative Minimum Tax legislation enacted in December.
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, Education Credits
•Form 5695, Residential Energy Credits
• Schedule 2 (Form 1040A), Child and Dependent Care Expenses for Form 1040A Filers
• Form 8396, Mortgage Interest Credit
• Form 8859, 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 Internal Revenue Service for a few weeks until the IRS computers are reprogrammed for the late tax law change. The Internal Revenue Service expects to be ready for these returns by Feb. 11. Even if you are affected, you should remember that it is always a good idea to start working on your tax return sooner rather than later.
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 Web site at www.IRS.gov.