What is the delay in the filing season?

The tax return filing season will be delayed this year. You can submit a paper return anytime after January 1. You cannot submit an e-filed return until January 26. However in either case the IRS will not begin processing tax returns until January 31. This means that refunds will be later for everyone due to the late start and the inevitable backlog of returns since so many will be processed at the same time. Why is there a late start this year? The primary reason is Obamacare because there is still uncertainty in how to handle this part of a tax return with credits and penalties.