Still Job Seeking?

Seven Tax Tips for Job Seekers

Many taxpayers spend time during the summer months updating their résumé and attending career fairs. The Internal Revenue Service reminds job seekers that you may be able to deduct some of the expenses on your tax return.
Here are seven things the IRS wants you to know about deducting costs related to your job search.

1. To qualify for a deduction, the expenses must be spent on a job search in your current occupation. You may not deduct expenses you incur while looking for a job in a new occupation.
2. You can deduct employment and outplacement agency fees you pay while looking for a job in your present occupation. If your employer pays you back in a later year for employment agency fees, you must include the amount you receive in your gross income, up to the amount of your tax benefit in the earlier year.
3. You can deduct amounts you spend for preparing and mailing copies of your résumé to prospective employers as long as you are looking for a new job in your present occupation.
4. If you travel to an area to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. You can only deduct the travel expenses if the trip is primarily to look for a new job. The amount of time you spend on personal activity compared to the amount of time you spend looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job.
5. You cannot deduct job search expenses if there was a substantial break between the end of your last job and the time you begin looking for a new one.
6. You cannot deduct job search expenses if you are looking for a job for the first time.
7. The amount of job search expenses that you can claim on your tax return is limited. You can claim the amount that is more than 2 percent of your adjusted gross income.  You figure your deduction on Schedule A.

For more information about job search expenses, see IRS Publication 529, Miscellaneous Deductions. This publication is available on www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

Pre-order the IRS 2012 tax calendar now!

The English version of the 2012 IRS Tax Calendar for Small Business and Self Employed, Publication 1518, will ship in late-November. The Spanish calendar (Pub 1518SP) will ship late-December.

To Order call the IRS directly at 1-800-829-3676.

Correction: 2011 standard mileage rate increase

The standard mileage rate for business miles increased to 55.5 cents a mile July 1. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011.

IRS Tax Tip: How to Prepare Before a Disaster Strikes

A home disaster can be stressful enough without reconstructing important records and accounting for belongings. The Internal Revenue Service encourages taxpayers to safeguard their financial and tax records before disaster strikes. Listed below are four simple tips for individuals on preparing for a disaster.

1: Take advantage of paperless recordkeeping for financial and tax records. Many people receive bank statements and documents electronically and important documents like W-2s and tax returns can be scanned into an electronic format and stored on a flash drive or CD in a safe place. Keep it with other essential documents like home-closing statements, vehicle titles, insurance records and birth, death or marriage certificates and legal paperwork. Some online services can automatically back up computer files and store them offsite. Regardless of how you save your documents(whether it is electronically or on paper) ensure they are safe from the elements, but also encrypted and/or locked up to guard against disclosure or theft.

2: Document Valuables The IRS has disaster loss workbooks for individuals that can help you compile a room-by-room list of your belongings. One option is to photograph or videotape the contents of your home, especially items of greater value. You should store the photos or video in a safe place away from the geographic area at risk. This will help you recall and prove the market value of items for insurance and casualty loss claims in the event of a disaster.

3: Update Emergency Plans Make sure you have a means of receiving severe weather information; if you have a NOAA Weather Radio, put fresh batteries in it. Make sure you know what you should do if threatening weather approaches or if a fire occurs.Review your emergency plans annually.
Count on the IRS In the event of a disaster, the IRS stands ready to help. The IRS has valuable information you can request if your records are destroyed. If you have been affected by a federally declared disaster, you can receive copies or transcripts of previously filed tax returns free of charge by submitting Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return.  Clearly indicate the official name of the disaster in red at the top of the form, to expedite processing and waive the usual fee for tax return copies.

For more information on disaster assistance check out the IRS' website:http://www.irs.gov/businesses/small/article/0,,id=156138,00.html

IRS E-File: A History

"Within 25 years, the mere trickle of 25,000 electronically filled individual tax returns has turned into a torrent of more than 100 million a year and led to a permanent change in the way Americans file their taxes.

And it started with one IRS employee having to manually turn on a modem every time tax returns were e-filed..."

Read the full story at the IRS' website!
http://www.irs.gov/newsroom/article/0,,id=240357,00.html

Follow the IRS on YouTube and Twitter

From the IRS web-page: http://www.irs.gov/newsroom/article/0,,id=233926,00.html

The IRS uses social media tools and platforms to share the latest information on tax changes, initiatives, products and services. These social media platforms include YouTube and Twitter. A listing is available on IRS.gov.
YouTube
The IRS has short and informative YouTube videos on tax related topics in English, American Sign Language (ASL) and a variety of foreign languages:
IRS Videos – http://www.youtube.com/irsvideos
ASL Videos – http://www.youtube.com/IRSvideosASL
Multilingual Videos – http://www.youtube.com/IRSvideosMultilingua
Twitter
IRS tweets include various tax-related announcements, news for tax professionals and hiring initiatives:
@IRSnews – http://twitter.com/irsnews
IRS news and helpful information for the public, the press and practitioners
@IRStaxpros – http://twitter.com/irstaxpros
IRS news and guidance for tax professionals
@IRSenEspanol – http://twitter.com/irsenespanol
Información, Comunicados de Prensa y Noticias en Español del IRS
News and information in Spanish from IRS
@RecruitmentIRS – http://twitter.com/recruitmentirs
IRS Human Capital Office
@YourVoiceatIRS – http://twitter.com/yourvoiceatirs
Taxpayer Advocate Service
Audio Files for Podcasts
The IRS creates audio files for use as podcasts. Each short audio recording provides information on one tax related topic. The audio files and their transcripts can be found in the Multimedia Center on IRS.gov. These files are also available as podcasts on iTunes.

IRS Special Edition Tax Tip

With the Monday, April 18th federal income tax deadline rapidly approaching the IRS wants remind taxpayers about the self-help tools that are available to make filing taxes easier.

Taxpayers seeking last minute help can find a wide variety of useful products and information from the comfort of their home through the IRS website.

• IRS.gov is "open" 24 hours a day 7 days a week.
• The 2011 Filing Season Tax Tips, available on www.IRS.gov, provide a wealth of information and links to help taxpayers meet the deadline.
• 1040 Central is the comprehensive source for individual income tax information.
• Interactive Tax Assistant is a tax law resource that guides taxpayers through a series of questions and provides responses on credits, deductions and general filing questions.

The IRS daily filing season tax tips also available on the website provide easy to read plain language information to help taxpayers. 


Here are a few of the available tax tips covering some of the most common taxpayer questions.

Want to file your return electronically for free?

Free File on IRS.gov is always open - See IRS Tax Tip 2011-11 - Let Free File Do the Hard Work for You.

Want to know more about filing electronically?

Electronic filing is no longer the exception, it’s the norm - See IRS Tax Tip 2011-10 - Prepare and File Your Taxes Electronically

Need more time to file?

Request an Extension until October 17 - See IRS Tax Tip 2011-69 - Seven Things about Getting More Time to File Your Tax Return.

Can’t pay or need an installment agreement?

File on time and the IRS may be able to grant more time to pay - See IRS Tax Tip 2011-64 -Read This if you need More Time to Pay Your Taxes.

Need a form or publication?  

No need to call, download it from IRS.gov - See IRS Tax Tip 2011-04 - Ways to Obtain IRS Forms and Publications.

Not sure if you have to file a tax return?  

Your age, income, marital status all make a difference -  See IRS Tax Tip 2011-02 – Do I Have to File a Tax Return?

Need IRS Individual Tax Law Information?   

The IRS has a pub for that - See IRS Tax Tip 2011-30 - Six Facts About IRS Publication 17.

Have a question about your refund?  

Check out the "Where's My Refund" tool - See IRS Tax Tip 2011-66 - Ten Things to Know about Tax Refunds.

What other information is available on the IRS website? 

Need to know more? - See IRS Tax Tip 2011-05 - Top Ten Reasons to Visit IRS.gov.