IRS Delayed in Processing Education Tax Benefits

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February 6, 2013

The Internal Revenue Service will begin processing tax returns claiming education credits by the middle of February, according to a January 28 announcement. IRS urges students and families including Form 8863 - the form used to claim the American Opportunity Tax Credit and the Lifetime Learning Credit - with their 2012 federal tax return to wait until mid-month to file their return.

In preparation for the tax filing season each year, the Service reviews and tests systems to avoid processing errors and refund delays. During testing, IRS discovered that programming changes were needed to ensure smooth processing of Forms 8863.

According to the announcement, the delayed start in processing Forms 8863 will not affect taxpayers claiming other education-related benefits, such as the above-the-line deduction for tuition and fees and the student loan interest deduction.