Tax filers - re: Education Credits

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Tax filers - re: Education Credits

Postby jebmke » Sun Jan 27, 2013 11:46 pm

My tax software vendor provided this alert today.

http://mytaxwise.blogspot.com/2013/01/i ... ng-of.html

The IRS announced on an industry call with software vendors participating in the Controlled Launch this morning that they would start rejecting any e-file that contains Form 8863 (Education Credits) effective immediately.


no real explanation yet as to the cause of the hold.
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Re: Tax filers - re: Education Credits

Postby HueyLD » Mon Jan 28, 2013 8:55 am

This appears to be the season to wait until after March 31 to file one's taxes. The lawmakers created such a mess for the IRS and state revenue departments. I may even file an extension this year. The old joke was that the tax software became perfect on April 15. However, the new joke may be: the tax software becomes perfect on October 15.
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Re: Tax filers - re: Education Credits

Postby MathWizard » Mon Jan 28, 2013 1:14 pm

This makes no sense.

The return you are filling out now is for 2012, not 2013.
Education Credits (form 8853) were and are OK for 2012.

What act congress may yet take regarding 2013 taxes is not yet determined. This makes tax planning
for 2013 taxes difficult, but has nothing to do with filling out your 2012 tax return.

The instructions for 2012 can be found at:
http://www.irs.gov/pub/irs-pdf/i8863.pdf
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Re: Tax filers - re: Education Credits

Postby HueyLD » Mon Jan 28, 2013 1:22 pm

MathWizard wrote:This makes no sense.

The return you are filling out now is for 2012, not 2013.
Education Credits (form 8853) were and are OK for 2012.

What act congress may yet take regarding 2013 taxes is not yet determined. This makes tax planning
for 2013 taxes difficult, but has nothing to do with filling out your 2012 tax return.

The instructions for 2012 can be found at:
http://www.irs.gov/pub/irs-pdf/i8863.pdf

Read the OP's link again. It is about the e-filing only and yes, it is for year 2012 Form 8863, not year 2013 or Form 8853.
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Re: Tax filers - re: Education Credits

Postby pshonore » Mon Jan 28, 2013 1:50 pm

I agree with HueyLD. The requirements for Ed Credits may not have changed but the form did. According to the instructions:

New format for Form 8863. Form 8863 has a new format for
the 2012 year. Begin on page 2, and complete a separate Part III
on page 2 for each individual for whom you are claiming either
credit (American opportunity credit or lifetime learning credit)
before you complete Parts I and II."


They are asking additional questions and that means the IRS computers need reprogramming. Could they have done it several months ago? Most likely yes, but they evidently did not.
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Re: Tax filers - re: Education Credits

Postby jebmke » Mon Jan 28, 2013 5:55 pm

I haven't looked at the new 8863 for this year. I do know that in Taxwise, instead of starting on P1 you start on P2. I don't start processing returns until Feb 7 which is a small lifetime from now in tax software years. I suspect (wild guess) is that the IRS schema for data on 8863 has a flaw and they need to rebuild.

Like many, I don't do my own return until it seems like much of the software & IRS dust has settled. There really isn't a good reason for me to file quickly. By April I've completed or reviewed/transmitted approximately 500 Federal returns and maybe 550 State Returns so I have low interest in my own.
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Re: Tax filers - re: Education Credits

Postby jared » Mon Jan 28, 2013 7:44 pm

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Re: Tax filers - re: Education Credits

Postby vectorizer » Tue Jan 29, 2013 1:30 pm

jared wrote:Official News Release from IRS:
http://www.irs.gov/uac/Newsroom/IRS-To- ... d-February

I appreciate this heads-up since I'm an early filer and have ed credits to claim; thanks.

The IRS term "mid-February" is somewhat fuzzy. How can taxpayers know when it's OK to file? Is there something I can monitor or subscribe to?
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Re: Tax filers - re: Education Credits

Postby HueyLD » Tue Jan 29, 2013 1:34 pm

vectorizer wrote:The IRS term "mid-February" is somewhat fuzzy. How can taxpayers know when it's OK to file? Is there something I can monitor or subscribe to?

http://www.irs.gov/uac/Subscribe-to-IRS-Newswire-1
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Re: Tax filers - re: Education Credits

Postby EagertoLearnMore » Thu Jan 31, 2013 10:38 am

Thanks for the heads-up. Indeed, while doing a review today TT says that because of education credits no processing until March. No rush to finish now.
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IRS accepting form 8863 on Feb. 14

Postby vectorizer » Tue Feb 12, 2013 8:47 am

According to the IRS Newswire email received yesterday, "Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits"
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