Job Search Expenses May be Deductible

People often change their job in the summer. If you look for a job in the same line of work, you may be able to deduct some of your job search costs. Here are some key tax facts you should know about if you search for a new job:

• Same Occupation.  Your expenses must be for a job search in your current line of work. You can’t deduct expenses for a job search in a new occupation.
  
• Résumé Costs.  You can deduct the cost of preparing and mailing your résumé.
  
• Travel Expenses.  If you travel to look for a new job, you may be able to deduct the cost of the trip. To deduct the cost of the travel to and from the area, the trip must be mainly to look for a new job. You may still be able to deduct some costs if looking for a job is not the main purpose of the trip.
  
• Placement Agency. You can deduct some job placement agency fees you pay to look for a job.
  
• First Job.  You can’t deduct job search expenses if you’re looking for a job for the first time.
  
• Substantial Job Break.  You can’t deduct job search expenses if there was a long break between the end of your last job and the time you began looking for a new one.
  
• Reimbursed Costs.  Reimbursed expenses are not deductible.
  
• Schedule A.  You usually deduct your job search expenses on Schedule A, Itemized Deductions. You’ll claim them as a miscellaneous deduction. You can deduct the total miscellaneous deductions that are more than two percent of your adjusted gross income.
  
• Premium Tax Credit.  If you receive advance payments of the premium tax credit it is important that you report changes in circumstances, such as changes in your income or eligibility for other coverage, to your Health Insurance.
  
• Marketplace. Other changes that you should report include changes in your family size or address.  Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

For more on job hunting refer to Publication 529, Miscellaneous Deductions. You can get IRS tax forms and publications on IRS.gov/forms at any time.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov

Additional IRS Resources:

• Publication 463, Travel, Entertainment, Gift, and Car Expenses
• The “What Ifs” for Struggling Taxpayers
• Publication 4128, Tax Impact of Job Loss
• Publication 5152: Report changes to the Marketplace as they happen  English | Spanish

IRS YouTube Videos:

• Job Search Expenses – English | Spanish | ASL
• What If – English | Spanish | ASL
• Premium Tax Credit – English | Spanish | ASL
• Premium Tax Credit: Changes in Circumstances – English| Spanish

IRS Podcasts:

• Premium Tax Credit – English | Spanish
• Premium Tax Credit Changes in Circumstances – English | Spanish

Subscribe to IRS Tax Tips

Falsifying Income to Claim Tax Credits Hits the IRS “Dirty Dozen” List of Tax Scams for the 2015 Filing Season

 WASHINGTON — The Internal Revenue Service today warned taxpayers about schemes to erroneously claim tax credits is on the annual list of tax scams known as the “Dirty Dozen” again for the 2015 filing season.

“Scam artists don't miss a trick and they can entice taxpayers to falsely inflate income on returns to claim tax credits they are not entitled to receive," said IRS Commissioner John Koskinen. "Taxpayers are ultimately responsible for the information on their tax returns, and I urge everyone to file the most accurate return possible."

Compiled annually, the “Dirty Dozen” lists a variety of common scams that taxpayers may encounter anytime but many of these schemes peak during filing season as people prepare their returns or hire professionals to do so.

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

Don’t Create Fake Income to Qualify for a Credit

Some people falsely increase the income they report to the IRS. This scam involves inflating or including income on a tax return that was never earned, either as wages or as self-employment income, usually in order to maximize refundable credits.

Just like falsely claiming an expense or deduction you did not pay, claiming income you did not earn in order to secure larger refundable credits such as the Earned Income Tax Credit could have serious repercussions. This could result in taxpayers facing a large bill to repay the erroneous refunds, including interest and penalties. In some cases, they can even face criminal prosecution.

Taxpayers may encounter unscrupulous return preparers who make them aware of this scam. Remember: Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. Make sure the preparer you hire is up to the task.

Here are a few tips when choosing a tax preparer:

6 Tips on Who Should File a 2014 Tax Return

Most people file their tax return because they have to, but even if you don’t, there are times when you should. You may be eligible for a tax refund and not know it. This year, there are a few new rules for some who must file. Here are six tax tips to help you find out if you should file a tax return:

1. General Filing Rules.  Whether you need to file a tax return depends on a few factors. In most cases, the amount of your income, your filing status and your age determine if you must file a tax return. For example, if you’re single and 28 years old you must file if your income was at least $10,150. Other rules may apply if you’re self-employed or if you’re a dependent of another person. There are also other cases when you must file. Go to IRS.gov/filing to find out if you need to file.

2. New for 2014: Premium Tax Credit.  If you bought health insurance through the Health Insurance Marketplace in 2014, you may be eligible for the new Premium Tax Credit. You will need to file a return to claim the credit. If you purchased coverage from the Marketplace in 2014 and chose to have advance payments of the premium tax credit sent directly to your insurer during the year you must file a federal tax return. You will reconcile any advance payments with the allowable Premium Tax Credit. You should receive Form 1095-A, Health Insurance Marketplace Statement, by early February. The new form will have information that will help you file your tax return.

3. Tax Withheld or Paid.  Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.

4. Earned Income Tax Credit.  Did you work and earn less than $52,427 last year? You could receive EITC as a tax refund if you qualify with or without a qualifying child. You may be eligible for up to $6,143. Use the 2014 EITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return to claim it.

5. Additional Child Tax Credit.  Do you have at least one child that qualifies for the Child Tax Credit? If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit.

6. American Opportunity Credit.  The AOTC is available for four years of post secondary education and can be up to $2,500 per eligible student.  You or your dependent must have been a student enrolled at least half time for at least one academic period. Even if you don’t owe any taxes, you still may qualify. However, you must complete Form 8863, Education Credits, and file a return to claim the credit. Use the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit. Learn more by visiting the IRS’ Education Credits Web page.

The instructions for Forms 1040, 1040A or 1040EZ list income tax filing requirements. You can also use the Interactive Tax Assistant tool on IRS.gov to see if you need to file. The tool is available 24/7 to answer many tax questions.

If you found this Tax Tip helpful, please share it through your social media platforms. 

Additional IRS Resources:

• The Premium Tax Credit
• Form 8962, Premium Tax Credit (PTC)
• Publication 5187, Health Care Law: What’s New for Individuals and Families
• Schedule 8812 (Form 1040A or 1040), Child Tax Credit
• Form 8863, Education Credits
• Publication 596, Earned Income Credit
• Publication 972, Child Tax Credit
• Publication 970, Tax Benefits for Education

IRS YouTube Videos:

• Do I Have To File a Tax Return? – English | Spanish | ASL
• Premium Tax Credit – English | Spanish | ASL
• Education Tax Credits – English | Spanish | ASL  

IRS Podcasts:

• Do I Have To File a Tax Return? – English | Spanish
• Premium Tax Credit – English | Spanish
• Education Tax Credits – English | Spanish

Health Care Law Brings Changes to IRS Tax Forms

This year, there are some changes to tax forms related to the Affordable Care Act. Along with a few new lines on existing forms, there will also be two new forms that will need to be included with some tax returns. While most taxpayers will simply need to check a box on their tax return to indicate they had health coverage for all of 2014, there are also new lines on Forms 1040, 1040A, and 1040EZ related to the health care law.

To help navigate these changes, taxpayers and their tax professionals should consider filing their return electronically. Using tax preparation software is the best and simplest way to file a complete and accurate tax return as it guides individuals and tax preparers through the process and does all the math. 

Here is information about the new forms and updates to the existing forms:

Form 8965, Health Coverage Exemptions

• Complete this form to report a Marketplace-granted coverage exemption or claim an IRS-granted coverage exemption on the return.
• Use the worksheet in the Form 8965 Instructions to calculate the shared responsibility payment.

Form 8962, Premium Tax Credit

• Complete this form to reconcile advance payments of the premium tax credit, and to claim this credit on the tax return.

Additionally, if individuals purchased coverage through the Health Insurance Marketplace, they should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8962.

Form 1040

• Line 46: Enter advance payments of the premium tax credit that must be repaid
• Line 61: Report health coverage and enter individual shared responsibility payment
• Line 69: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments

Form 1040A

• Line 29: Enter advance payments of the premium tax credit that must be repaid
• Line 38: Report health coverage and enter individual shared responsibility payment
• Line 45: If eligible, claim net premium tax credit, which is the excess of allowed premium tax credit over advance credit payments

Form 1040EZ

• Line 11: Report health coverage and enter individual shared responsibility payment
• Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit

For more information about the Affordable Care Act and filing your 2014 income tax return visit www.NTSrefund.com

Tax Season Opens As Planned

IR-2014-119, Dec. 29, 2014

WASHINGTON -- Following the passage of the extenders legislation, the Internal Revenue Service announced today it anticipates opening the 2015 filing season as scheduled in January.

The IRS will begin accepting tax returns electronically on Jan. 20. Paper tax returns will begin processing at the same time.

The decision follows Congress renewing a number of "extender" provisions of the tax law that expired at the end of 2013. These provisions were renewed by Congress through the end of 2014. The final legislation was signed into law Dec 19, 2014.

"We have reviewed the late tax law changes and determined there was nothing preventing us from continuing our updating and testing of our systems," said IRS Commissioner John Koskinen. "Our employees will continue an aggressive schedule of testing and preparation of our systems during the next month to complete the final stages needed for the 2015 tax season."

The IRS reminds taxpayers that filing electronically is the most accurate way to file a tax return and the fastest way to get a refund. There is no advantage to people filing tax returns on paper in early January instead of waiting for e-file to begin.

Affordable Care Act Tax Provisions for Individuals & Families

IRS.gov - The Affordable Care Act, or health care law, contains health insurance coverage and financial assistance options for individuals and families. The IRS administers the tax provisions included in the law. Visit HealthCare.gov for more information on coverage options and financial assistance.

What do I need to know about the health care law?

The Individual Shared Responsibility Provision requires you and each member of your family to have qualifying health insurance (called minimum essential coverage), have an exemption, or make a shared responsibility payment when you file your federal income tax return. If you get your insurance coverage through the Health Insurance Marketplace, you may be eligible for a Premium Tax Credit. Filing electronically is the easiest way to file a complete and accurate tax return. 

Coverage  Credits Payments ·        If you are like most people, you probably already have qualifying health care coverage and don’t need to do anything more than continue your insurance. ·        If you don’t have or maintain coverage, you will have to get an exemption or make a payment with your federal income tax return. ·        If you don’t have coverage, you may be able to get it through the Health Insurance Marketplace. For more information about the marketplace, visit      HealthCare.gov    ·        If you get coverage through the health insurance marketplace you may be eligible for the Premium Tax Credit (PTC). ·        The premium tax credit can be paid in advance to your insurance company or to you when you file your federal income tax return. Find out more about the option to get it now or get it later. For more information, see Publication 5120. ·        If you receive advance credit payments, you need to report changes in circumstances that will affect the credit to the Marketplace as they happen. For more information, see Publication 5152.  ·        If you don’t have coverage or qualify for an exemption you may have to make anIndividual Shared Responsibility payment when you file your income tax return. ·        For 2014, generally, the payment amount is the greater of 1% of your household income above your filing threshold or $95 per adult ($47.50 per child) limited to a family maximum of $285.   ·        You will report your coverage, exemption or payment on your federal income tax return. For more information, see questions #25 and #26.

In 2015, Various Tax Benefits Increase Due to Inflation Adjustments

WASHINGTON — For tax year 2015, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments.
The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts -

LEARN 2 EARN | We're HIRING.!

Are you looking for a fun, optimistic work environment? Flexible Hours? Extra Cash? Do you want to learn how to prepare income tax returns? If you answered YES to these questions we have a great opportunity for you! We are excited to announce that our office is now seeking career- minded candidates for Tax Preparers. With multiple locations in the Metro-Detroit area, we have several openings to fill. Experience is not necessary, we will train. Become a member of our dynamic team of professionals.

Job Title: Income Tax Preparer

Location: Multiple locations within Metro Detroit MI

Benefits: No

Education: High School

Shift: Monday – Sunday

Hours/Week: 20-40

Contractual: 01/02/2015-04/17/2015

Work Hours: Work to be scheduled Monday through Sundays with specific hours to be determined by office needs. Availability must include working evenings, weekends and multiple locations.

Scope: Responsible of providing quality services and preparing tax returns at assigned tax sites for eligible taxpayers and uphold the highest of ethical standards.

Preferred Skills:

• High School Diploma or equivalent AND/OR 1 year experience in tax preparation and working with the public.
• Obtain the IRS Tax Preparer Certification.
• Complete all REQUIRED training through the IRS & in office course
• Ability to use database and spreadsheet software (Excel) in a Windows and Goggle environment.
• Ability to use office equipment including a computer, printer, scanner copy machine, and fax machine.
• Ability to empathize and communicate with those persons facing economic, social, health, age, and educational barriers in a diverse community.
• Ability to use sound judgment and initiative to analyze and resolve problems; and work independently with minimum of supervision.
• Ability to collect data as directed by supervisor.
• Ability to carry equipment and material to various tax sites.
• Ability to organize a variety of simultaneous activities with attention to detail and timeliness.
• Ability to carry out oral and written instructions and work with a minimum of supervision.
• Ability to communicate effectively both orally and in written form.
• Ability to empathize and communicate with those persons facing barriers.
• Good interpersonal and professional skills including but not limited to professional appearance, tact, punctuality, communication, and dependability.

Filing Season 2014 Begins with More Returns Filed

IR-2014-15, Feb. 14, 2014

WASHINGTON — The IRS today announced that tax filings in 2014 have outpaced filings for the same time last year. As of Feb. 7, the IRS received 27.3 million returns, up 2.5 percent compared to the same time last year. Electronically filed returns account for almost 96 percent of those filed so far this year.

Taxpayers, either through tax preparers or from their home computers, have e-filed more than 26 million returns so far this year, up almost 4 percent compared to the same time last year. As of Feb. 7, taxpayers have filed more than 13 million returns from home computers, an increase of 14.7 percent compared to the same period last year.

Refunds are up for 2014, with almost 19.5 million issued this year, an increase of more than 18 percent compared to the same time last year. The average refund as of Feb. 7 is $3,317, up 4.6 percent compared to the same time last year. (Refund averages generally have higher dollar values early in the filing season than later in the year.)

Most refunds are directly deposited into taxpayer accounts; just over 87 percent of all refunds issued were directly deposited as of Feb. 7. 2014.

Follow the IRS on New Media

Subscribe to IRS Newswire

Watch Out for Tax Scams as Filing Season Opening Nears

 IR-2014-5, Jan. 23, 2014

WASHINGTON — With the start of the 2014 tax season approaching on Jan. 31, the Internal Revenue Service urged taxpayers to be aware that tax-related scams using the IRS name proliferate during this time of year.

Tax scams can take many forms, with perpetrators posing as the IRS in everything from e-mail refund schemes to phone impersonators. The IRS warned taxpayers to be vigilant of any unexpected communication that is purportedly from the IRS at the start of tax season.

The IRS encourages taxpayers to be on the lookout for phone and email scams that use the IRS as a lure. The IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS also does not ask for personal identification numbers (PINs), passwords or similar confidential access information for credit card, bank or other financial accounts. Recipients should not open any attachments or click on any links contained in the message. Instead, forward the e-mail tophishing@irs.gov.

2014 Tax Season to Open Jan. 31; e-file and Free File Can Speed Refunds

IR-2013-100, Dec. 18, 2013

WASHINGTON — The Internal Revenue Service today announced plans to open the 2014 filing season on Jan. 31 and encouraged taxpayers to use e-file or Free File as the fastest way to receive refunds.