On January 28, 2013, the IRS made an announcement regarding filing tax returns and claiming education credits. As they were gearing up for tax season to begin on January 30, 2013, the IRS stated they would start to take tax returns from taxpayers who were claiming education credits in the middle part of February.
Once the IRS updates their processing systems, people can file their taxes along with Form 8863, Education Credits. This form is used for taxpayers to claim college credits from the American Opportunity Tax Credit as well as the Lifelong Learning Credit.
The reason for delay
Every year, the Internal Revenue Service goes over and tests their system before the start of filing season. This is done so that taxpayers do not experience refund delays or processing problems.
This is when the IRS noticed that the Form 8863 needed programming changes so that it may be filed correctly. Most of the time, there are around 3 million tax returns that are filed which include the Education Credit Form 8863. These are normally filed between the start of tax filing season and the middle of February.
This delay does not affect most taxpayers from filing their taxes starting January 30, 2013. That will still be the effective opening date including those sending in Form 1040 series which includes the deduction of the student loan interest using form 8917 which is the Tuition and Fees Deduction.
All forms can be filed now through TurboTax online and will be submitted as soon as the IRS allows.