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Tax change could bring significant benefits 


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By Associated Press

WASHINGTON — If you are a college student, teacher or resident of a state that has sales taxes but no income tax, the bipartisan tax agreement this month could mean significant benefits next year. And the IRS is adjusting its computers to take in your requests.
That means it will take a little longer for some taxpayers to file their 2010 returns, as the Internal Revenue Service reprograms computers for new college tuition breaks, teachers who buy classroom supplies with their own money, and Americans who live where there’s no state and local income tax to deduct.
The IRS said Thursday that it will be mid- to late February before it can accept returns that apply for those tax breaks. However, delays will be minimal for taxpayers who already itemize deductions, because they normally have to wait for their financial documents.
“The majority of taxpayers will be able to fill out their tax returns and file them as they normally do,” IRS Commissioner Doug Shulman said. “We will do everything we can to minimize the impact of recent tax law changes on other taxpayers. The IRS will work through the holidays and into the new year to get our systems reprogrammed and ensure taxpayers have a smooth tax season.”
The IRS will announce a specific date when it can start processing tax returns affected by the changes.


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