IRS to Start Processing 'American Opportunity Tax Credit' Form Feb. 14

IRS to Start Processing 'American Opportunity Tax Credit' Form Feb. 14The Internal Revenue Service said it will start filing two major tax forms next week that cover education credits and depreciation, including the popular American Opportunity Tax Credit.
This clears the IRS backlog in processing forms following the delayed actions last month by U.S. lawmakers in extending tax credits and other tax breaks
The IRS will start processing tax returns that contain Form 4562, Depreciation and Amortization, on Sunday, Feb. 10. This form covers depreciation for property or vehicles placed into service during the 2012 tax year.
On Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits. This form is used to claim the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit.
The AOTC is a tax credit of up to $2,500 to cover the cost of college tuition, fees and course materials paid during the taxable year. Forty percent of the credit (up to $1,000) is refundable. This means you can get it even if you owe no tax.
The IRS had said that these forms were delayed due to programming modifications that were needed after Congress enacted the so-called “fiscal cliff” legislation on Jan. 2 to avert a host of expiring tax breaks. Lawmakers waited until the last minute, causing delays in re-working tax forms.
“This step clears the way for almost all taxpayers to start filing their tax returns for 2012,” the IRS said in a statement. “These forms affected the largest groups of taxpayers who weren’t able to file following the Jan. 30 opening of the 2013 tax season.”

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