Many years ago, when I first started this blog, I wrote a popular post about tax refunds. Since I posted about taxes earlier this week (and since most of you probably didn’t see it because the blog was young) I thought it would be worth pointing out again.

So if you’re expecting a tax refund, it turns out you can calculate exactly how much of a refund you’re going to get. For free.

There are several calculators that will do it all for you online. Just answer a series of questions, and have some recent pay stubs handy. Hopefully you’ll see some money coming your way:

efile 2012 Tax Calculator

Here’s one from H&R Block.

Here’s one from 1040.com.

And finally, here’s the offical IRS withholding calculator. If you don’t get your withholding right, you’re not going to get any refund! So use this tool to make sure you’ve got your W-4 set up properly!

Related posts:

1. Calculate Your Tax Refund Today
2. The Quickest Way To Get A Tax Refund
3. Keep Your Tax Refund For Yourself

It’s that time of year again, if you can believe it.

I just started working on my taxes this weekend, so I thought I’d do a bit of research for a nice worker/job-seeker friendly tax post.

It occurred to me that we’re all pining away for refunds aren’t we?

Did you know that 3/4ths of Americans get tax refunds every year? And the average refund is around $3000? That’s not chump change!

If you think you could do something useful with an extra few grand in your pocket, then you’re probably also wondering what might be the the fastest way to make that happen.

Well, once again, the IRS is pointing out that the quickest way to get your tax refund money is to choose direct deposit when you file. The IRS has been on this direct deposit kick for many years now. It saves them money. It saves trees.

But it also saves you time and gets your refund into your hot little hands much faster. My accountant told me that if I filed my return today (Jan. 30th) and requested a check by mail, I’d be fortunate to see that check by the end of February. But: according to the IRS, if you enter your direct deposit information when you file your 2011 taxes, you can see the money in your bank account in as little as ten days.

In addition, the IRS is quite flexible:

You can deposit your refund into multiple accounts. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to divide your refund.

So if you’re getting ready to file your return, make sure to sign up for direct deposit.

Bonus tip: why turn around and spend your tax return? Why not invest in yourself? Put the money into your IRA! It’s bonus money, right? Let it work for you.

Related posts:

1. How To Calculate Your Tax Refund
2. Calculate Your Tax Refund Today
3. Keep Your Tax Refund For Yourself

It’s that time of year again. Tax time. So that means it’s also time to do my yearly reminder that certain aspects of your job search are tax deductible.

Let me start out by saying I am not a legal or accounting professional. The information I am going to share is guidance only, and is based on experiences I’ve had with clients. In addition, I am going to draw from publicly available IRS information. Please do not take my word for anything that follows: consult your own legal or accounting professional.

First of all, the form you want to refer to to learn all about job search expenses is IRS Publication 529.

Here are the things that are generally tax deductible for your job search:

• Phone calls, postage and printing expenses.
• All job search related travel. If the purpose of your trip is primarily related to your job search, you can deduct expenses related to it. If you are traveling for an interview, or evening traveling to apply or research open positions, this means you.
• Employment fees, association fees, agency fees and membership fees. If you pay to search, this is a viable expense.
• Resume related expenses, including the hiring of professional resume services. This can also extend to photographs you might take of yourself or even any expenses related to the promotion or advertising of your resume.

It is my understanding that you can deduct these expenses, even if your job search has not yet been successful.

Unfortunately, if this is your first time looking for a job, you cannot deduct any expenses. Sorry recent grads.

Also, please make note of these possible exceptions I found via H&R Block:

To qualify, your job search must be for a job in your current, or most recent, trade or business and should be at a similar level of responsibility with duties similar to those of your most recent job.

• If you haven’t held a job in that trade or business for an extended length of time, your job search will be considered for a new trade or business, and your deductions may not be allowed.
• If you held a college internship or valid job while in college and your search is for a job in the same trade or business, you will be able to deduct job search expenses.
• If you’re just out of school and had no paying jobs while in school that were related to your trade or business, your deductions won’t be allowed.

A bit more info:

The IRS classifies job search expenses as “miscellaneous itemized deductions.” Job search expenses are only deductible from your income if you itemize deductions and only to the extent that the total exceeds two percent of your adjusted gross income. Again, refer to Publication 529 on-line at www.irs.gov.

Finally, if you have to move for a new job, your moving expenses might also be deductible. If your new job is more than 50 miles further away from your former home than your previous job, you can deduct expenses for moving household goods and personal effects, and for travel to the new location. Publication 521 will give you all the information you need relating to moving expenses.

Related posts:

1. Job Search Is Tax Deductable
2. Tax Tip- Don’t Forget The Home Office Deduction
3. This Year’s Tax Code Changes

Until last weekend, I had never heard of PaycheckCity.com (h/t NYTimes).

But I’m glad I was turned on to them. They have 3 free and insanely useful online calculators and assistants that are designed to help the average worker.

The most impressive to me is the W-4 form assistant. Isn’t it confusing every time you start a new job and you have to give them info for the W-4? How many dependents should you claim? How many exemptions? Especially for the younger workers out there, what about student loan debt and other considerations?

This W-4 form assistant will help you out.

They also have a Salary Paycheck Calculator and an Hourly Paycheck Calculator, both accessible from the main page.

And of course, before you can get to fill out a W-4, you need to be hired. And a professional resume writing service will help you do that.

Related posts:

1. 7 Career Fields That Offer College Loan Forgiveness
2. College Debt? Delay Any Refi Until July
3. What To Do If You Just Can’t Fill A Resume

Thanks for SavvySugar for doing the research on this one.

Sitting around wondering when you can get your hands on that economic stimulus check? After all, how can we all run to Target and spend our way out of recession if we don’t have the money in our pockets?

Well, it’s the government, so it’s not coming tomorrow. Or the next day.

Turns out the checks will go out based on the last two digits of your social security number. If you do direct deposit, you’ll see the money in your account some time in May. Good old paper checks might not see anything until July!

(PS… here’s a rundown of how much money you can expect)

Direct deposit payment

Paper check

…

Related posts:

1. The Quickest Way To Get A Tax Refund
2. Your Resume, By Your Jewish Mother
3. Working From Home Reality Check

It’s a well-established fact, but probably a little-known one.

Your job search expenses can be tax deductible.

We’ve been telling our clients this for years: if you get your resume professionally produced, the cost of the resume is tax deductible.

SavvySugar has a rundown of the details:

• Your job search must be for a position in the same field as your current job.
• If you’ve taken a long break between walking out the door of your last job and embarking on a new job hunt, the IRS won’t allow you to deduct any job hunting expenses.
• Recent graduates don’t qualify for these types of deductions.

Related posts:

1. Is The Job Search Tax Deductible? Yes… Sometimes.
2. Tax Tip- Don’t Forget The Home Office Deduction
3. How To Calculate Your Tax Refund

Continuing our efforts to get prepared for the tax man, I found a great rundown of some of the major tax code changes that are applicable this year.

Unfortunately, the article his here, behind the LATimes subscription firewall. The link might work cleanly, or it might not. If not, try searching for “untangling the tax code latimes” at news.google.com.

If that doesn’t work, I’m gonna go ahead and sum up some of the more important changes, just to get the info out there.

First, here are the tax breaks that are going away. Your 2007 return is the last time to claim:

• The tuition and fees deduction. Bummer if you have a kid in college or are doing continuing education for a better degree.
• But the teachers get screwed too. This is the last year for the educator expense deduction, which lets schoolteachers to write off up to $250 in out-of-pocket classroom expenses.
• And this is the last year to claim breaks on home energy improvement purchases. This means more energy efficient windows, water heaters, etc.

You gotta hand it to the government. Those all sound like excellent tax breaks to eliminate!

Now for the list of new deductions!

I’m going to quote selectively from the article. Please read the full thing for all the details:

* Mortgage insurance write-offs. Mortgage insurance premiums are now deductible, but there are caveats. (…)

* Debt cancellation exclusion. Before last year, if you lost your house in foreclosure or were forced to sell it for less than the loan amount, you’d typically be subject to “debt cancellation income.” The short version: The IRS assessed income tax on the money you didn’t have to pay back. (…) For 2007 through 2009, debt cancellation on your primary residence, whether as the result of a so-called “short sale” or a foreclosure, is not taxable. (…)

* Charitable receipts. The IRS will no longer take your word for the $20 you put in the collection plate each week (…) You need to either write a check or get a receipt for every donation. (…)

* AMT credit. If you paid the alternative minimum tax in a prior year because of a phantom gain, you might qualify for a refundable credit in 2007 (…)

* Child exemptions. The clarification of rules stipulating who can claim a child as a dependent allows some unmarried partners and grandparents to take tax write-offs for children they support who might live with a parent.

* Kids and taxes. Children under the age of 18 may have to pay tax on unearned income at their parents’ marginal rate. (…)

Related posts:

1. What You’d Get From The (So Called) Economic Stimulus Package
2. Tax Tip- Don’t Forget The Home Office Deduction
3. When NOT to Put Money in Your 401k

Our worklife has invaded our homes… and the beach-head is called our home office.

Almost everyone I know has some sort of home office setup. And most new houses that are built (if any new houses are being built…) these days include a home office instead of a den/breakfast room.

I’m not an accountant or anything close, but even I know that the home office deduction is one of the most common deductions people forget about. It’s not just for telecommuters anymore (though officially working from home does help your case with the IRS).

Are you qualified for the home office deduction? How is the deduction calculated?

Wisebread has a quick summary post outlining all these things. Firstly, exclusive use as a home office is key:

If the workspace is used for both business and personal use, then it is not deductible. Furthermore, the space must be used on a regular basis for business purposes; a space that is used only a few times a year will not be considered a home office by the IRS, even if the space is not used for anything else.

Secondly, the necessity of working from home needs to be proven:

There cannot be an alternative location available, at least on a regular, continuous basis. Both employees and independent contractors may have to prove this to the IRS via expense receipts and/or documentation from their employers stating that there is no workplace provided to them outside their homes.

All things being equal, I would feel most comfortable consulting an accountant on this one. Read the entire article at WiseBread. They’ll walk you through it, but I think that Turbo tax might not be sufficient in this case.

Deduct Those Home Office Expenses (WiseBread)

Related posts:

1. Working From Home Reality Check
2. This Year’s Tax Code Changes
3. Is The Job Search Tax Deductible? Yes… Sometimes.

With tax season coming up, I’ll be looking to highlight some financial and organizational tips over the next few months. First up, I have a tip I heard years ago that I don’t think has gotten wide currency:

You Should Create And Keep Your Own Personnel File

Every employer does it. Your personnel file is a quick and handy reference for your boss. It not only keeps track of every important legal piece of paper relating to you, but provides a quick summary of who you are and what you do/what you’re owed/how you’re performing.

Creating your own personnel file at home can be an invaluable tool that does just the same for you, but in reverse. In one place you can quickly reference anything you need related to your career. Whenever you have to do business of any kind with your current or future employer, you won’t be standing there empty handed when they pull out your file and have full records of your history. You’ll have a file of your own and can meet fact with fact, paper with paper.

What is the utility of this? I think you’ll understand when you see what your personal personnel file should include:

Your Personal Personnel File Should Include

• Your contracts. This means a copy of your signed contract that got you hired at your current job. Also, copies of your contracts at any and all previous jobs. There can never be any confusion about what you’re owed, what is expected of you, what was promised to you, or when and how your job will end… so long as you keep your own copy of all your contracts.
• Your most recent evaluation reports. Good or bad, you should request copies. If anyone starts to question your performance, your employers’ own evaluation of you work, in their own words, is invaluable. And if your performance was poor in the past, keeping lousy reviews can be helpful to demonstrate growth or improvement.
• Anything legal you sign at work. Such as: a noncompete agreement; a confidentiality agreement; an agreement relating to a company-provided property such as a car or a cell phone or a laptop; liability waivers; etc.
• Your W-2 forms and any related employment tax documents. Going back at least 3 years. Other possible documents to include: 1099s and W-4s (the Employee’s Withholding Allowance Certificates).
• Your benefits/retirement summary. And any other documents that highlight all the perks and benefits you’re entitled to under your contract.
• Your health and insurance benefits summary. As an addendum to the above, if you’ve got an outline of the health benefits you are due, make a copy and throw it in here also. You should obviously keep a separate health records file for yourself and your doctor, but a summary sheet can be included in your personnel file for reference purposes. This is especially useful if you lose your job… how much longer are you entitled to your benefits?
• Your financial contributions. To retirement (401k, IRA) or health insurance (life insurance), broken down monthly or yearly or both. How much have you kicked in? How much is your employer required to kick in? Have they done so? You might have to do this by hand yourself, but it’s also a good reference for you to help keep a gauge on how you’re doing with your long-term financial goals.
• Any formal proposals/memos/agreements you make with or submit to your employer. For example, a raise request, the proposal to create a new position/project or even a proposal to work from home.
• Grades/transcripts from college. Especially for younger professionals.
• Proof of attendance/completion of any training/seminar.
• Copies of awards or citations.
• Written references from previous employers or others related to your career.
• Termination documents from previous jobs. If only to prove/explain the circumstances of your leaving a previous position, these are good things to keep copies of.
• Business expenses. Travel expenses, mileage reports, rental car receipts, lunches, paper clips, etc.
• Warnings and/or other disciplinary actions/complaints with co-workers.

If you don’t have any or all of these documents, ask for copies to be made. You don’t necessarily need the originals for everything. Just having a copy in your own personal personnel file will suffice to provide all the reference and evidence you’ll ever need.

Related posts:

1. How Much Should An Employee Get In A Severance Package?
2. Your Employer Can Cut Your Benefits After Age 65
3. Top 5 Ways to Create Job Security