the tax filing due date behind us, those who have not yet
received their refund might want to know when it will be
If this applies to you, there is a way to check on the status
of your refund online.
The popular “Where’s My Refund” feature on the IRS web site (www.irs.gov)
allows taxpayers to see the status of their refund after
filing their income tax return.
What You Should Know
IRefunds of e-filed returns usually take 10 to 21 days to
Paper returns take longer than e-filed returns.
The IRS states that 90% of refunds are processed within this
21 day time period.
Original refund processing projections can change.
This can be due to processing backlogs, or errors in your tax
Sometimes a delay is a good thing.
The IRS has acknowledged there is a huge increase in identity
fraud as thieves try to steal tax withholdings. The IRS is
using their data match programs to catch as much of this
illegal activity as possible.
The IRS has a new e-file processing program that is getting a
workout this year. Systems glitches are to be expected as this
new process is ironed out by the IRS.
"Where's My Refund"
In the meantime, if you wish to check on the status of your
refund this is what you should know:
Log on to: www.irs.gov and
click on "I'm Waiting for my Refund.
When to check:
- 72 hours after an e-filed tax return confirmation (usually
within three days of e-filing)
- 4 weeks after a mailed tax return is sent
What you need to provide:
- Social Security number
- Filing Status
- EXACT refund amount
Remember, the information provided to you by the IRS is not
a guarantee of payment.
So please fight the urge to spend your refund before you
receive it. Unfortunately, no amount of calling or checking
will change the speed of returning your money.
With 140 million tax returns processed each year, sometimes
all you can do is wait.
Eligible Long-Term Care Premiums
Premiums for long-term care are treated the same as health
care premiums and are deductible on your taxes subject to
certain limitations. For individuals age 40 or less at the end
of 2012, the limitation is $350. Persons over 40 but less than
50 can deduct $660. Those over age 50 but not more than 60 can
deduct $1,310, while individuals over age 60 but younger than
70 can deduct $3,500. The maximum deduction $4,370 and applies
to anyone over the age of 70.
Adoption Assistance Programs
For taxable years beginning in 2012, the amount that can be
excluded from an employee's gross income for the adoption of a
child with special needs is $12,650. In addition, the maximum
amount that can be excluded from an employee's gross income
for the amounts paid or expenses incurred by an employer for
qualified adoption expenses furnished pursuant to an adoption
assistance program for other adoptions by the employee is
$12,650 (down from $13,360 in 2011).
The amount excludable from an employee's gross income begins
to phase out under for taxpayers with modified adjusted gross
income (MAGI) in excess of $189,710 and is completely phased
out for taxpayers with modified adjusted gross income of
$229,710 or more.
Taxpayers adopting children are eligible for both the adoption
credit (see below) and the adoption assistance exclusion of
adoption expenses paid for through an employer's adoption
assistance plan. However, the same adoption expense cannot
qualify for both the adoption credit and the adoption
Foreign Earned Income Exclusion
For taxable years beginning in 2012, the foreign earned income
exclusion amount is $95,100, up from $92,900 in 2011.
For an estate of any decedent dying during calendar year 2012,
the basic exclusion amount is $5,120,000, up from $5,000,000
in 2011. Also, if the executor chooses to use the special use
valuation method for qualified real property, the aggregate
decrease in the value of the property resulting from the
choice cannot exceed $1,040,000, up from $1,020,000 for 2011.
The maximum tax rate remains at 35%.
Note that this is only a PARTIAL LIST and you can
click here to read the rest of the article.
Please contact us if you need help understanding which
deductions and tax credits you are entitled to. We are always
available to assist you.
As always you can call our offices if you have any
questions about these or any other accounting, tax,
financial planning or insurance related issues, at 302-225-3000.
Regards, Tim Humphreys, CPA
Business Builders for Entrepreneurs LLC