If You Itemize, Don't Get in a Hurry

The IRS won't be ready for you for awhile:

Itemize your tax deductions? Itching for a refund? You're going to have to wait.

The IRS said that it needs until mid- to late-February to reprogram its processing systems because Congress acted so late this year cleaning up the tax code. The bill, which includes deductions for state and local sales taxes, college tuition and teacher expenses, wasn't signed into law until Dec. 17.

549Email Print CommentThe bill ensured that the federal income tax rates would not change, and itemized deductions will continue to be allowed in full for high-income taxpayers.

As a result, the 50 million taxpayers who itemize their deductions will have to hold off for a bit before they file. Of course, not everyone files early: only about 9 million of the 140 million U.S. tax filers filed in January or February of last year.

A lot of you will also find more money taken out of your first couple of checks than should be because the payroll processing companies or your employers may not have had a chance to get adjusted withholding tables in time. That money is probably gone until you file your 2011 return.