Serious Coin

Even losing a job can have a silver lining: The IRS may give you a tax break on your job search expenses, as long as you look for work in your current occupation.

Granted, the deduction is limited to the amount you spend thats more than 2 percent of your adjusted gross income for the year, which is the number at the bottom of the first page of your 1040 form. So if you clear $40,000, youll still be on the hook for the first $800 in job hunting expenses, plus tax. Still, every bit of savings counts when youre ï½

The tax filing process is a complicated nuisance for most people. If your identity is stolen, it can become a nightmare.

According to the U.S. Government Accountability Office, the IRS reported 248,357 incidents of tax-related identity fraud in 2010, up 380 percent since 2007. (ref 2)

None involved a direct theft of information from the IRS. Instead, most identity thieves used Social Security numbers and other identifying info stolen from other sources to commit employment fraud or steal tax refunds.

Both forms of fraud can cause major problems for legitimate taxpayers.

For example, if a thief uses your Social ï½

You went to college. You borrowed from the bank. The bank is hounding you for the payments. You cant afford to pay. What are your options and how can you get the bank off your back?

Student loan debt is a complicated subject, and we wont cover all the details here. We want to offer a detail that could yield potential tax savings: student loan cancellation and student loan repayment assistance may be tax exempt if you meet certain requirements.

Check out Tax Benefits for Education, from the IRS. Page 35 will tell you more about qualifying education ï½

Bring home a new baby in 2011? Congratulations! Collect your income tax refund.

Were talking about collecting a tax credit for an adopted child. Youll earn a tax credit whether you adopt domestically or internationally, but the process is different.

Domestic adoptions allow prospective parents to claim qualifying adoption expenses during the second year of the process, for expenses incurred during the first year. In the third year of the process parents claim expenses for both the second and third years, usually as they complete the adoption process. Adoptees may claim up to $12,150 in qualifying expenses per year. ï½

Do you deserve a $500 tax credit? Depends. Did you make any energy-saving home improvements in 2011?

Replace drafty windows or doors with energy efficient ones? Install a high-efficiency shower head? Swap an old wood-burning furnace for a new Energy Star furnace? Insulate your water heater? Install a digital thermostat?The list goes on.

Take a look and see if you home improvement project qualifies for the Nonbusiness Energy Property Credit.

The NEPC credit rate for 2011 is 10% of the total cost for qualified energy efficiency improvements, but the credit maxes out at $500.

If you plan on claiming ï½

We get it, we do. You dont love idea of paying your taxes. Only a handful of Americans do: accountants, those banking on big returns, a few politicians, Warren Buffett. The rest of us arent really psyched about tax season.

So, IRS wants you to hate it less. How? They make it easy, allowing you to electronically file (e-file) and opt to receive your refund deposited directly into your bank account. Last year, eight of ten U.S. taxpayers filed individual returns via e-filing approximately 112 million people. Those e-filers smile to themselves as the filing deadline arrives, knowing some ï½

Theres good news and theres bad news. Since its tax-related, lets rip the bandage off quickly and begin with the bad: the IRS is economically profiling Americans, subjecting 84% more tax returns to audits in 2007. While auditees might grumble, targeted auditing might actually be good for the country. It collected an additional $10 billion taxes than the previous year.

Now, you ask, how is an 84% increase in IRS audits a good for me?

Well, if you earn more than $1 million a year, it is and it isnt. The odds youll face an audit are 1 in 11, ï½

So what if the trade convention you attended was held in New Orleans, during Mardi Gras and ordered breakfast in bed everyday? Its still a business expense, as long as you can document your claims.

Business breakfast in bed?

What would the IRS consider adequate when it comes to claiming deductions for travel, entertainment, transportation or gifts? The IRS needs documentary evidence to support your deduction claims.

Documentation involves paperwork (i.e. receipts, bills, contracts, etc.) that confirms the amount you spent, when and where you spent it and some information that identifies what the expense includes.

If youre unsure ï½

Go greener this year by joining a car pool? Its win-win-win for you, your colleagues and the environment.

Casual car pools may not require contributions from riders, but hopefully youre not ferrying around free-riders. Payments from pool riders arent considered part of your taxable income; the IRS considers them reimbursement for your expenses.

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Suffering from emotional distress? Well, there’s one area where you can stress less: taxes.

Heres how it works: Emotional distress isnt the same as physical sickness or physical injury in the eyes of the IRS. However, its taxed that way IF the emotional distress is a result of physical sickness or physical injury. What does that mean?

If you receive compensation for emotional distressand the distress stems from physical sickness or injuryyou should not include the damages paid as compensation as part of your income on your tax return.ï½

Guess who’s paying for plastic with plasticaging Hollywood divas, news anchors and politicians?

Guess again.

People making under $60,000 a year accounted for 70 percent of the countrys plastic surgeries in 2009. A full third of the 12.5 million plastic surgery patients made less than $30,000 a year.

In-house financingoften, high-interest loans made at the surgeons officeand easy access to credit makes the $10 billion nip/tuck industrys services accessible for almost anyone with a pulse.

Americans spent more than a billion dollars on nose jobs in 2009 alone. Women spent $963 million on boob jobs (men spent $53 million; you ï½

Yes, yes, times are tough. We get it. But how much money do you really save on that detour to the cheap gas station across town?

Well, it turns out it’s complicated. Which is why we’re here to break it down.

First, what you really want to keep in mind is the size of your tank.The more you spend, the more you save. If youve got an SUV or a pickup, you’ll save more at a far-away bargain station than if you’re in a smaller car.

Assuming the extra time youll spend driving is worth at least two bucks, ï½

Eat out much? Then you know how all those little outings can add up to a big dent in your wallet. And for the frugalistas who don’t dine out on the town…don’t you kinda wish you did?

So. What’s a fiscally responsible foodie to do?

Eating less is not an option.

Well, you could try to order from the kids’ menu and mix your own vodka tonics from a flask. But there’s another option that won’t get you kicked out of the restaurant: Dine out on a Monday.

Though it may differ depending on the market, generally Mondays are ï½

Fact: Getting a new car is awesome.

Fact: Buying one blows.

Here’s a tipskip the car lot feeding frenzy altogether, and go straight for the 7 floor of car dealerships: the Internet Department.

Internet Departments do not allow you to inhabit the body of John Malkovich. Sorry, they just save you money.

What’s that? According to Philip Reed of car buying guide Edmunds.com, most dealerships have one. An untouted boon to car buyers everywhere, this department offers the one thing the lot doesn’t: a sales force with a salary. They get bonuses based on the volume of cars they move, ï½

The organization pulled in $97 million dollars in 2010. Average project billings went up from $161,000 in 2005 to $5.3 million in 2010. Not bad in the midst of a global recession.

Especially for a group based out of Somalia. Whose primary business is piracy.

Teach a man to fish, feed him for a lifetime. Fish out his waters, he’ll start a $97 million piracy business.

Yup. Disturbingly enough, being a Somali pirate is a pretty lucrative gig these days.

The disappearance of a solid central government in Somalia as well as an extremist Islamic insurgency has led to ï½