Education Credits Form 8863 being delayed

[tpnl]

What are you doing with these?

I have done two returns that qualify for education credits. The clients really want their refunds sooner rather than later. I suggested they file the return without the education credits and then amend it to include them. This way they can get part of their refund now and the rest later.

Of course, we have a charge for amending a return, so I am not suggesting that I do this for free. I blame the government and the IRS.

[taxmom34]

gee, the delay is only two weeks to file. amended returns 8-10 weeks. and the education credit is most likely the bulk of the refund.

[tpnl]

No it's not.

The $1000 refundable part is not the bulk of the refund (in these two cases I mentioned).

The IRS had not provided a concrete date they will DEFINATELY process those returns. So the clients has no idea when. I can say two weeks, and BAM the IRS extends the delay, now the client is mad and goes elsewhere.

[BP.]

file the return without the education credits and then amend it to include them

Here's why I'm thinking I won't go this route with the 8863. For school financial aid purposes, I think the info about education credits received is relevant to completing the FAFSA form. I realize the FAFSA can be updated later, but still, the original 1040 is signed as being correct and complete. It won't be if the 8863 isn't included. Yes, the taxpayer is simply postponing a credit they are eligible for, but I don't want to supply a return that is the basis for aid decisions and that excludes potentially relevant facts and figures.

[ChEAr$]

The $1000 refundable part is not the bulk of the refund (in these two cases I mentioned).

The IRS had not provided a concrete date they will DEFINATELY process those returns. So the clients has no idea when. I can say two weeks, and BAM the IRS extends the delay, now the client is mad and goes elsewhere.

What if you lend them the refunds temporarily? THen they can pay you back when they actually get their refunds.

[DexEA]

FWIW the IRS issued the following statement asking taxpayers for patience

Hold Returns for those Taxpayers Who Would Benefit Most by Claiming Education Credits
________________________________________
The IRS announced on Monday that taxpayers filing Form 8863, to claim the American Opportunity Tax Credit or the Lifetime Learning Credit can begin filing by the middle of February after the IRS updates its processing systems. The delayed start will have no impact on taxpayers claiming other education-related tax benefits, such as the tuition and fees deduction and the student loan interest deduction.

Filers who need to attach Form 8863 used to claim the American Opportunity Tax Credit and the Lifetime Learning Credit to their tax return can prepare their return now but must wait to submit it in mid-February. This applies to paper and electronically filed Forms 8863.

As you guide taxpayers through the available education credits and deductions, in person or through the tax preparation software you use, please be sure to hold returns for those taxpayers who would benefit the most from waiting and filing the Form 8863, even though some taxpayers may be in a hurry to get a refund. Remember, taxpayers filing an amended return to claim an additional refund must wait until they’ve received their original refunds. Also, keep in mind that an amended tax return cannot be filed electronically and normal processing time for Form 1040X is eight to 12 weeks from the IRS receipt date. We want taxpayers to claim the combination of education credits and deductions that is most advantageous to them.

Updated information will be posted on IRS.gov as it becomes available.