Planning on Claiming an Education Credit this Year? Take Your Time
The IRS announced today that it will not start processing Form 8863 on 30 January along with other tax forms. Processing of Form 8863 will not begin until late February or early March. Here is what that means to you.
If you were hoping to take the American Opportunity Credit or Lifetime Learning Credit for the 2012 tax year, your tax filing will be delayed. On Sunday 27 Jan 13, the IRS starting rejecting tax returns that contained the Form 8863 (the Form required to claim the two education credits above). It appears that tax returns with the Form 8863 will not be accepted until late February at the earliest. If you try to file electronically earlier than that date, your return will most likely be rejected. If you file on paper, you won't improve your situation either.
Best case if you are in a refund situation and your return includes the Form 8863 is that you won't be able to get your refund until mid-March. For those that owe money, you still will have to pay on time (even though your filing is delayed).