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Issue Number: IRS Summertime Tax Tip 2015-25

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Boost Your Tax Knowledge with a Free Learning Program from the IRS

The IRS has a free program for anyone who wants to learn about taxes. “Understanding Taxes” is available 24/7 on IRS.gov. It was designed by the IRS and teachers to help you learn the “how’s” and “why’s” of taxes. The program can make learning about federal taxes as easy as A-B-C.

Accessible (web-based)
Brings learning to life
Comprehensive

Here are six more reasons to study up on it:

1. Lessons on IRS.gov. Teachers and students will find that the nearly 40 lessons on IRS.gov are easy, relevant and fun!

2. User friendly site map. You can quickly look through the program and skip to the part you want.

3. Tutorials, tests and more. A series of tax tutorials guide you through the basics of tax preparation. Another feature is a chance to test your knowledge through tax trivia. There’s also a glossary of tax terms.

4. Customize to fit your style. If you’re a teacher, you can make the interactive program fit your style. Use your own lesson plans and plan your own activities. It’s easy to add to your school’s curriculum.

5. No need to register. You don’t need to register or login to use the program. You can take a break and return to where you left off whenever you choose. Just take note of the page and lesson number before you leave the page.

6. The how’s and why’s of taxes. Learn the basic concepts of taxes. Self-paced modules offer a step-by-step approach to tax preparation. The lessons are also a great way to learn about the history and theory of taxes in the USA.

You may use the program anytime during the year. Visit IRS.gov and type “Understanding Taxes” in the search box. The application contains lessons and practice problems based on 2014 tax law.

For more current tax law training, visit Link and Learn Taxes on IRS.gov. The IRS will update this program later this year. The Web address is https://apps.irs.gov/app/vita/. You can also find it if you type “Link and Learn” in the search box.

IRS YouTube Videos:

Understanding Taxes – English | ASL

IRS Tax Tips

August 26, 2015

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Issue Number: IRS Summertime Tax Tip 2015-24

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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 onSchedule 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 thepremium 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 onIRS.gov/forms at any time.

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

IRS Tax Tips

August 24, 2015

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Issue Number: IRS Summertime Tax Tip 2015-23

Inside This Issue

Key Tax Tips on the Tax Effects of Divorce or Separation

Income tax may be the last thing on your mind after a divorce or separation. However, these events can have a big impact on your taxes. Alimony and a name change are just a few items you may need to consider. Here are some key tax tips to keep in mind if you get divorced or separated.

Child Support. If you pay child support, you can’t deduct it on your tax return. If you receive child support, the amount you receive is not taxable.
Alimony Paid. If you make payments under a divorce or separate maintenance decree or written separation agreement you may be able to deduct them as alimony. This applies only if the payments qualify as alimony for federal tax purposes. If the decree or agreement does not require the payments, they do not qualify as alimony.
Alimony Received. If you get alimony from your spouse or former spouse, it is taxable in the year you get it. Alimony is not subject to tax withholding so you may need to increase the tax you pay during the year to avoid a penalty. To do this, you can make estimated tax payments or increase the amount of tax withheld from your wages.
Spousal IRA. If you get a final decree of divorce or separate maintenance by the end of your tax year, you can’t deduct contributions you make to your former spouse’s traditional IRA. You may be able to deduct contributions you make to your own traditional IRA.
Name Changes. If you change your name after your divorce, notify the Social Security Administration of the change. File Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov or call 800-772-1213 to order it. The name on your tax return must match SSA records. A name mismatch can delay your refund.

Health Care Law Considerations

Special Marketplace Enrollment Period. If you lose your health insurance coverage due to divorce, you are still required to have coverage for every month of the year for yourself and the dependents you can claim on your tax return. Losing coverage through a divorce is considered a qualifying life event that allows you to enroll in health coverage through the Health Insurance Marketplace during a Special Enrollment Period.
Changes in Circumstances. If you purchase health insurance coverage through the Health Insurance Marketplace you may get advance payments of the premium tax credit in 2015. If you do, you should report changes in circumstances to your Marketplace throughout the year. Changes to report include a change in marital status, a name change and a change in your income or family size. By reporting changes, you will help make sure that you get the proper type and amount of financial assistance. This will also help you avoid getting too much or too little credit in advance.
Shared Policy Allocation. If you divorced or are legally separated during the tax year and are enrolled in the same qualified health plan, you and your former spouse must allocate policy amounts on your separate tax returns to figure your premium tax credit and reconcile any advance payments made on your behalf. Publication 974, Premium Tax Credit, has more information about the Shared Policy Allocation.

For more on this topic, see Publication 504, Divorced or Separated Individuals. You can get it on IRS.gov/forms at any time.

Additional IRS Resources:

Publications 590-A, Contributions to Individual Retirement Arrangements (IRAs)
Publication 555, Community Property
Publication 974, Premium Tax Credit
Publication 5152: Report changes to the Marketplace as they happen English | Spanish

IRS YouTube Videos:

Changed Your Name After Marriage or Divorce? – English |Spanish | ASL
Premium Tax Credit – English | Spanish | ASL
Premium Tax Credit: Changes in Circumstances – English |Spanish | ASL

IRS Podcasts:

Changed Your Name After Marriage or Divorce? – English |Spanish
Premium Tax Credit – English | Spanish
Premium Tax Credit: Changes in Circumstances – English |Spanish

IRS Tax Tips

August 21, 2015

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Issue Number: IRS Summertime Tax Tip 2015-22

Inside This Issue

Become a Tax Volunteer and Make a Difference in Your Community

If you ever wonder how to make a difference and help people in your community, then becoming a tax volunteer may be just right for you. The IRS is looking for people who will provide free tax help in 2016. You will receive all the tax training you need so you can help others file their tax return.

The IRS sponsors two programs that offer free tax help across the country. These are the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. Many people know them by their initials. In 2015, VITA and TCE volunteers prepared more than 3.7 million tax returns at no cost for people with low-to-moderate incomes.

Here are five good reasons why you should become a VITA or TCE volunteer.

No prior experience needed. You’ll receive specialized training and can serve in a variety of roles. If you are fluent in another language, you may be able to help those who speak that language.
Free tax law training and materials. You’ll learn how to prepare basic tax returns and learn about tax deductions and credits that benefit eligible taxpayers. These include credits such as the Earned Income Tax Credit, Child Tax Credit and Credit for the Elderly.
Volunteer hours are flexible. Volunteers generally serve an average of three to five hours per week. The programs are usually open from mid-January through the tax filing deadline in April. A few sites are open all year.
VITA and TCE sites are often nearby. More than 12,000 sites were set up in neighborhoods all over the country this year. They are often set up in community centers, libraries, schools, shopping malls and similar places. Chances are good that you can volunteer at a site near you.
Continuing education credits for tax pros. Enrolled Agents and non-credentialed tax return preparers can earn credits when volunteering as a VITA/TCE instructor, quality reviewer or tax return preparer. See the IRS fact sheet for more information on Continuing Education Credits.

As a volunteer, you’ll join a program that’s helped millions of people file tax returns at no charge for more than 40 years. Your help will make a difference. It’s people helping people. It’s that simple.

To find out more, visit IRS.gov and type “tax volunteer” in the search box. If you’d like to become a volunteer, you will need to submit your volunteer interest information on IRS.gov at IRS Tax Volunteers.

Additional IRS Resources:

IRS YouTube Videos:

Volunteer Income Tax Assistance Recruitment – English |Spanish | ASL

IRS Tax Tips

August 19, 2015

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