New Tax Deductions

New tax law changes that may help maximize your refund that help you save for your debt settlement.

Unemployment Deductions

If you lost your job in 2008, ask your tax professional about itemized tax deductions for job search expenses. According to Jackson Hewitt Tax Service, you may be eligible to deduct costs associated with travel, printing resumes, or job placement fees. If you were required to relocate for a new job, you may be able to deduct moving expenses.

Assistance Available For Those Unable To Pay Taxes

If you discover that you will not be able to pay your 2008 taxes, you may have options available. The IRS has compiled a list of questions and answers on their web site that deal with certain scenarios and financial situations. Due to the present state of the economy, some taxpayers may qualify for leniency if they owe back taxes. According to the IRS web site, financially distressed taxpayers may be eligible for suspended collection activity if they have a hardship case. For those unable to make a scheduled payment in an existing installment plan, the IRS may allow the individual to skip a payment.

Disclaimer

This is intended to give a basic overview of tax changes that may be available to you. It is not intended to replace the advice of a qualified tax professional. We recommend that you consult an experienced tax expert that may be able to help you with your individual situation.

Tax Resources


Free File: Free File Alliance companies will participate in the program run by the IRS and the Free File Alliance, a consortium of tax preparation software companies. This program is available to taxpayers that have an adjusted gross income of $56,000 or less. Each company sets its own criteria for who can use the service. Visit www.irs.gov and click on the "Free File" link on the left hand side. You can then read the requirements and search for participating companies.

VITA: The Volunteer Income Tax Assistance Program (VITA) offers free tax help to individuals with low and moderate incomes (usually $42,000 and below). VITA sites are usually located at libraries, schools, and shopping malls. Call the IRS at 1-800-TAX-1040, press option #1 followed by option #5. Ask the customer service representative for a VITA site located within your zip code.

TCE: The Tax Counseling for the Elderly (TCE) Program provides free tax help to people age 60 or older. For more information, you may also call the IRS at 1-800-TAX-1040, press #1 followed by option #5. AARP also offers the Tax-Aide counseling program for elderly individuals with low incomes. To locate the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit the AARP-TaxAide site at www.aarp.org.