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How Will Fiscal Cliff Deal Impact Your Tax Filing?

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    Liberty Tax Service CEO John Hewitt offers tips for preparing your tax returns.

  • Duration 3:59
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Oh we avoided at least one fiscal -- it still costs -- problems.

The IRS is saying it won't begin processing tax returns until January 30 because congress -- -- last minute tax law change what they've got -- Gotta have some talk to catch up pier and yes -- refund check.

Will be late as well -- get ready for that now.

What deductions do you need to take advantage of and how -- the delay impact you.

Joining me now live chairman and CEO liberty tax -- is John Hewitt outshot everybody gets so anxious.

When they start to look at at that point on the calendar but it it -- -- you get eight days to -- at least at the moment.

But -- think the most significant change really will be for people.

But the biggest changes can affect just tens of millions of people was later refunds.

Many smooth many low income taxpayers are used to getting their money in January they're not gonna see it and -- mid February -- it's.

How are you advising clients now that a solution has been agreed upon at least for some portions of the tax laws.

Well we're advising.

Our our clients have that is now the fiscal cliff has turned into a fiscal slide.

They ended there would be -- you we fear for the economy would be 2% payroll tax.

Withholding that's that's it now reinstated to higher taxes for the wealthy there won't work -- -- later refunds that the the economy's gonna stall.

And that well.

All right later refund checks that's that is a big deal a lot of people wait for about him in the turnaround -- they spend it either to -- down debt in their own households or they need things that they need to buy.

But let's talk about the time between now and then deduction opportunities.

We've brought you want because we wanted you to advise our viewers and to let them know an advance don't forget certain deductions what do you have to -- difference.

You know Liz I think that the number one thing people need to think of his expenses related to their income.

So if you need if you need -- expensed to generate income.

For example if if your reporter and you buy books or magazines or you need cosmetic surgery or you have travel we just think.

About about your expenses related -- -- cup.

-- laughing because of the the cosmetic surgery appear on camera sure why not you'd figure telling us that you could write all those things off.

When you drive your -- of what story your or work for example if you were journalists that's all we have and you park you save those receipts everything related to the -- who do.

That's exactly right and that's the most commonly missed.

Item out there is is expenses related to -- reduction of income.

On your screen everybody look at a teacher's right off the school supplies students any educational spending does that include -- -- Say for example tutoring.

If it can but -- that most obviously most of it is taken up with tuition.

Okay truck drivers your meals and hotels can be deducted these are things that everybody needs to know what should ask their tax prepare certainly in advance of you -- -- the 38 days later issue the IRS has just wait eight days because of the last minute tax changes from last year.

Are you advising people don't look at that as as time for you start putting this together now.

Yes and -- actually lives it's it's really fifteen days because the -- had already put her off.

Seven days so it's a total fifteen.

Day delay from last -- we're -- -- go ahead get ready to file because those that filed first we'll get their refunds the -- You know all of these changes cause confusion with people -- -- interested from the perspective of the CEO of attacks from -- like liberty.

Does this help your business because a lot of -- -- I don't know what I should do here by need these guys.

Absolutely whenever there's change whenever there's consternation it drives people to to prepare as it should.

John nice to see you happy new year.

They Cecilia I don't will be hearing from John in the future between now and and taxed I'm -- -- -- chairman and CEO of liberty tax David by the.

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