Jan. 7, 2014
Tax Returns on Hold
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Tax Returns on Hold
January marks the fresh start of a new year, and for many it also means tax-return time.
"The vast majority of our clients prepare before February 15," David Perez, owner of Liberty Income Tax Services, said.
This year, however, early filers will be forced to wait until January 31 to send-off their return.
Typically, tax-payers can file and receive their returns in early January, using the last pay check stub of the previous year.
Perez said the government shutdown in October, backed-up IRS operations, and now everyone will have to pay the price.
"(That) means a lot of upset people - I guess you could say - in our business, because everyone is anticipating getting money in January, and now we're looking at February."
Perez said people can still submit their paperwork before the end of the month, they just won't see the money in their pockets until at least several more weeks.
He adds their phone lines have been ringing non-stop with people strapped for cash, looking for any incentives or loans they can get their hands on now.
A sure sign, Perez said - that the local economy will be affected by this backup.
"Markets like ours thrive on those tax dollars, I mean thrive," Perez said. "And if you ask any of your local business owners, restaurant owners, cell phone companies or car dealerships, this is going to affect them."
Besides this, there are a few other things tax payers should keep in mind when preparing their return this year.
For the first time ever, same-sex couples can file jointly; there was a slight increase in the earned income credit; and Perez said those who will be fined for lack of health insurance under the
Affordable Healthcare Act, should consider their options with their tax advisor now.
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