Delay in approving tax cuts could delay tax refunds for millions of Americans

The delay in approving Bush era tax cuts means a delay in millions of people getting their tax refunds. Four groups of Americans will have to wait. They include teachers who file an expense deduction, homeowners who itemize their taxes, college Students who use a tuition deduction and 4 million Americans who use the alternative minimum tax.

At the earliest, those who fall in those categories will have to wait until mid to late February before their tax returns are even accepted. The trickledown effect starts with a delay from lawmakers.

“All you can do is wait,” said Classic Tax and Accounting Owner Carol Sanderson. The delay in approving Bush era tax cuts means a delay in millions of people getting their tax refunds. “This is every American being affected by politics as usual,” said Sanderson. “The main people that are going to be affected are homeowners,”

Many Bush-era tax cuts weren't approved until late 2010. That delay has ripple effect.

“The change in the itemized deductions affects almost no Iowans.” Sanderson says calculating mortgage interest and property taxes changed primarily for people in states that don't have income tax. ”Even though those did not change the form changed and that's what's causing the delay.“

Not just homeowners, it's a delay for teachers too who deduct out of pocket expenses from purchases for the classroom, college students who use tuition deduction, and those who use the alternative minimum tax. Here's the process. First, Congress had to approve the tax extensions by voting and signing them into law. Next, the IRS must approve the new tax forms and incorporate them into all tax software. The final step is accepting and processing returns.

“We expect that release date to be sometime in mid-to late February,” said Sanderson, “There will be a flood of tax returns at that time and it will probably clog-up the system.“

Add at least 10 more days until you receive any money from Uncle Sam after the return is accepted. There's nothing anyone can do to speed up the process so budgeting around the delay is essential. You will not be affected by the delay if you fall into one of these categories. If you're a renter, use the 1040 A or 1040 EZ. form. Again, there's no need to wait to file your taxes no matter what category you fit in. Some returns just won't be accepted by the IRS as soon as they normally would.