Cliff Tax Trepidation
HUNTSVILLE, Ala. (WHNT) — The Internal Revenue Service warned in a letter to congress Wednesday if a fiscal cliff deal is not reached, up to 100 million Americans could face tax delays. As one might imagine, that has a lot of people asking questions.
H&R Block master tax advisor Barbara Black says if many of the tax extender bills are not passed in a matter of days it will directly affect taxpayers’ 2012 returns.
Also on January first the two-year payroll tax extension expires meaning a two percent increase in withheld social security tax.
If that is not enough to worry about there are delays already announced by the IRS.
“They are starting their e-filing more than a week later than normal this year it will be January 22 and they do not expect to give refunds out in less than twenty-one days so many people are going to see a longer period of time before they get their refund.”
As H&R Block associates answer questions about withholding amounts they say they are also trying their best to educate clients.
“Because most people do not want to see a great reduction in refund or worse–a large balance due.”
H&R Block says they are also on a campaign over the next year to make sure tax payers realize the 2012 tax return is what determines eligibility for the recently passed affordable healthcare act that will go into full effect in 2014.