Your Distressed Property and Short Sale Expert in Maryland
Yes, the Internal Revenue Service needs time to revise some forms specifically for most homeowners since Congress was so late revising the tax code - just a month ago.
The forms must be altered because of the "Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act" of 2010 of December 17th.
That's a mouthful!
Anyways, since it changed some Federal Income Tax rules, some taxpayers should wait - until mid or late February!!! to file their Federal Taxes. Of course, since most states borrow information from the Federal Tax Forms, most taxpayers in these categories will wait to file State Taxes until this time also.
The categories are taxpayers claiming itemized deductions such as: Mortgage Interest and State and Local Taxes Deduction; Higher Education Tuition and Fees Deduction; Educator Expense Deduction
Couple of other reminders:
Verify your mortgage 1098 form provided by your mortgage servicer - You can check this by using a website such as the Mortgage Professor, to ensure the mortgage interest paid amount is correct.
If your home was sold in a short sale or foreclosure in 2010, you will receive a form 1099-C - Debt Cancellation from your lender. Forgiven debt is considered income to the taxpayer, unless you fit into three categories* .
* The three categories are: 1) You filed for bancruptcy and the cancellation is authorized by a judge; 2) You were insolvent before the cencellation - your liabilites exceeded your debts; 3) The canceled debt relates to your principal residence, where you live and pay taxes, AND, the money you borrowed was used to buy, build or substantially improve your home
If a refinance was used for vacation, to buy a car, or other uses not in the list above - tax is due!
If you believe you qualify for this exclusion, you must use form 982 - and perhaps read IRS Publication 4681.
This information can be read and downloaded from the IRS website - www.irs.gov.
The Internat Revenue Service is pushing hard for taxpayers to use E-File - not paper returns. In fact, in a few years paper returns will no longer be accepted.
If E-File is combined with Direct Deposit(no charge!) you should receive your refund within 10 days - I have seen three day turnarounds.
Take all legal deductions this year - Congress is looking to restict or eliminate some of them for future years
Dennis
Keeping People From Experiencing Foreclosure
www.MarylandDistressedProperties.com
www.Frederick-MontgomeryCountyHomes.com
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