Tax Tips For 2011
MIAMI (CBS4) - It's still more than three months off, but this year's April 15th tax deadline may be a little harder to meet than year's past because of Congress' last minute changes to the tax code.
In fact, the IRS admits it's not even ready to handle early returns until next month or even later because it's still changing it's tax forms and filing instructions to reflect the new changes.
"It's going to be even more confusing because Congress overhauled the tax codes last month before adjourning for the year," said Charles Sachs of Coral Gables' Evensky & Katz. "And taxpayers, tax experts and the IRS itself are still trying to figure out what it means to our bottom line."
Sachs said the tax changes add up to a trillion dollars worth of bonuses for taxpayers this year alone.
Experts say most of us will see a little more money in our take home pay because payroll taxes for Social Security were cut by 2% and in effect all taxpayers will get an automatic raise.
Also, tax credits were extended for education expenses as well as local and state sales tax deductions on some major purchases.
Because of the all the changes, the IRS is advising taxpayers against filing complicated returns with a lot of itemized deductions before the middle of February at the earliest.
If you're waiting for the latest edition of your favorite tax software, it may take a while before the publishers put out their final versions because of all the new changes in the tax laws they're still trying to figure out.
Local tax experts recommend starting a file for all the tax forms you'll soon start getting and keep them all together in a safe place.
Don't forget, even if your tax records get delayed, you can always file your return early with any estimated payments and then send in an amended return once you've got all your records together.
To help you make tax season as easy as possible for you, CBS4 News will have its' "Tax Tips Phone Bank" up and running as the April 15th deadline approaches.
