Friday, April 25, 2014

Career Repair? "A beneficial career skill is scalability. That’s the ability to do two jobs or three assignments,..."

"When you experience normal career development, you advance your skills and compound the

complexity of your assignments over time. Your career is damaged if you missed a chance to

develop on the schedule that you had intended. As explicated in this book until this chapter, each

stretch assignment gives you a chance to experience new things, to triumph over adversity, to

experience wins, or to fail at something and learn what you can do “next time.” With stalled

career development, not only is there no “next time” there is no “first time,” either...

In addition to the lack of newly acquired skills, existing skills atrophy from lack of use. Skills

you legitimately acquired in training or on the job wither away. Former supervisors lose their

people management skills in roles as an individual contributor. Managers who used to exercise

profit and loss authority lose executive decision-making skills as they execute strategies imposed

on them from above. College graduates doing jobs that do not require a college degree can no

longer remember why English 350 or Anthropology 101 really would apply in an office setting

(and, of course, they do)."

A beneficial career skill is scalability. That’s the ability to do two jobs or three assignments,

then hand off part of that and go back to your old role, or go on adding more and more

responsibility, in infinite combinations. Scalability is actually an uncommon skill, and fast-track

careerists tend to possess it. Look again at the transitions from supervisor to leader on pp. xx.
Careerists with the skill to go in and out of these roles temporarily and successfully are

immensely valuable to organizations, particularly those facing a lot of change and stress.

Improving Quality of Life Through Telecommuting

Improving Quality of Life Through Telecommuting
The following is a paper written by Wendell Cox for The Information Technology & Innovatition Foundation
The number of jobs filled by telecommuters could grow nearly four-fold to 19 million and deliver substantial economic, environmental and quality of life benefits for the United States over the next 12 years. Thanks to its potential to cut costs, increase productivity, and expand the supply of potential employees, telecommuting is emerging as a standard business strategy for a large number of organizations. Spurred by advances in information technology, especially the spread of broadband services, telecommuting is the fastest growing mode of getting from home to work. Facilitated by continued expansion in broadband, especially higher speed broadband, telecommuting is poised to become more popular than transit and non-household car pools as a means of accessing work.

Could You Telecommute?

Telecommuting successfully depends on the right mix of many variables including the right jobs/tasks, people, organizations, and home-office settings. Here are a number of the factors that can help you decide whether you have what it takes to be a good candidate for telecommuting.

Do you have the right job?
How much of your work, or part of your work, is portable? How much face-to-face contact do you require with people at the office? Does your job require ongoing access to equipment, materials, and files that are situated only at the workplace?

Do you have a good job performance record?
How familiar are you with your work? Do you know your job well enough to keep working without the need to check with the supervisor at every stage of a project? Do you have a history of reliable and responsible job performance?

Do you have the right home office environment?
Does your home have a separate room or area that is quiet, safe, and insulated from domestic activities and other distractions? Do you have the work tools necessary to do your job, such as a computer, remote-access capability and ergonomically acceptable furniture? Would members of the household allow you to work without interruption?

Do you have the right boss and organizational culture?
Is your boss generally flexible and supportive of employee needs to balance work with personal life? Does your boss trust your integrity and professionalism? Does your boss tend to evaluate performance by results rather than by the clock or 'face time'? Is your organization generally supportive of flexible work arrangements, including telecommuting?

Are you an effective communicator?
Are you adept at communicating quickly and effectively with your supervisor, office colleagues and clients? Would you be prepared to 'up' your level of communication to ensure that you, your supervisor and your colleagues are all on the "same page"?

Are you self disciplined, motivated and organized?
At the office, it's fairly easy to develop the discipline to go back to work after a break. As a telecommuter, this may be a problem unless you are self-motivated, self-disciplined, and able to focus on the work to be done. Do you have a proven track record of personal motivation and being able to stay on course without direct supervision? How easily are you distracted by TV, the kids, doing things around the house, visiting with neighbors and raiding the refrigerator?

Do you have social independence skills?
Some people have no trouble working on their own. Others need the social interaction with office colleagues, and may feel lonely or isolated working at home for long stretches of time (even with keeping in touch with the office by phone, e-mail, etc.)

Are you susceptible to overwork?
With work so accessible around the clock, many telecommuters find it difficult to know when to quit their workday. Unchecked, this can lead to reduced productivity and stress-related illnesses. Do you have a tendency to overwork?

Do you see telecommuting as a way to balance work and other roles?
If allowed to telecommute, would you be prepared to dedicate 100% of your attention to your work during working hours? Or do you see telecommuting as a way to combine your work while taking care of children, elders, or sick people? If you do, you are not likely to be the best candidate for telecommuting.

Are you a good candidate for Telecommuting?
Determining whether or not you may be considered for telecommuting will depend on how you have demonstrated necessary competencies. Take our self-assessment test and find out if you are a good candidate for telecommuting.


Integrity within PostSecondary Institutions relative toward IX (Title IX

itle 18, U.S.C., Section 245
Federally Protected Activities

1) This statute prohibits willful injury, intimidation, or interference, or attempt to do so, by force or threat of force of any person or class of persons because of their activity as:

a) A voter, or person qualifying to vote...;
b) a participant in any benefit, service, privilege, program, facility, or activity provided or administered by the United States;
c) an applicant for federal employment or an employee by the federal government;
d) a juror or prospective juror in federal court; and
e) a participant in any program or activity receiving Federal financial assistance.
2) Prohibits willful injury, intimidation, or interference or attempt to do so, by force or threat of force of any person because of race, color, religion, or national origin and because of his/her activity as:
a) A student or applicant for admission to any public school or public college;
b) a participant in any benefit, service, privilege, program, facility, or activity provided or administered by a state or local government;
c) an applicant for private or state employment, private or state employee; a member or applicant for membership in any labor organization or hiring hall; or an applicant for employment through any employment agency, labor organization or hiring hall;
d) a juror or prospective juror in state court;
e) a traveler or user of any facility of interstate commerce or common carrier; or
f) a patron of any public accommodation, including hotels, motels, restaurants, lunchrooms, bars, gas stations, theaters...or any other establishment which serves the public and which is principally engaged in selling food or beverages for consumption on the premises.
3) Prohibits interference by force or threat of force against any person because he/she is or has been, or in order to intimidate such person or any other person or class of persons from participating or affording others the opportunity or protection to so participate, or lawfully aiding or encouraging other persons to participate in any of the benefits or activities listed in items (1) and (2), above without discrimination as to race, color, religion, or national origin.
Punishment varies from a fine or imprisonment of up to one year, or both, and if bodily injury results or if such acts include the use, attempted use, or threatened use of a dangerous weapon, explosives, or fire shall be fined or imprisoned up to ten years or both, and if death results or if such acts include kidnapping or an attempt to kidnap, aggravated sexual abuse or an attempt to commit aggravated sexual abuse, or an attempt to kill, shall be subject to imprisonment for any term of years or for life or may be sentenced to death.


Title IV Federal Student Aid Program Integrity Final Regulations


On October 29, 2010, the U.S. Department of Education published final regulations for improving the integrity of federal student aid programs authorized by the Higher Education Act of 1965. The final rules are the result of a year-long process led by the Department, which included public meetings and negotiated rulemaking– including representatives of students, consumers, public and private institutions, accrediting agencies, and admission officers. NACAC’s Director of Public Policy David Hawkins represented college admission professionals on the negotiating committee last winter advocating for critical protections for students. NACAC commented in support of the proposed rules issued by the Department in June 2010 and commended the Department’s efforts to protect students and taxpayers against unlawful recruitment practices.

In response to general comments discussed in the final rules, the Department notes:

"We are confident that the regulations strengthening program integrity are in the best interest of students, consumers, and taxpayers, and will improve the quality of the programs offered at institutions by ensuring that all programs meet a threshold of quality. We believe that students, particularly disadvantaged, high-need students who are the most vulnerable, are not well served by enrollment in programs that leave them with limited or low-paying job prospects and with crushing debt that they are unable to repay. Students who complete their educational programs should not expect results that leave them in a worse situation than when they began their educational programs. We believe the regulations will hold institutions accountable and ensure that students can have confidence in the quality of the educational programs in which they invest their time, energy, and money."

The proposed regulations address fourteen issues related to program integrity:
• Definition of High School Diploma *

• Ability to Benefit*

• Misrepresentation of Information to Students and Prospective Students *

• Incentive Compensation *

• State Authorization as a Component of Institutional Eligibility

• Gainful Employment in a Recognized Occupation *

• Definition of a Credit Hour

• Agreements Between Institutions of Higher Education

• Verification of Information Included on Student Aid Applications

• Satisfactory Academic Progress

• Retaking Coursework

• Return of Title IV Funds: Term-based Programs with Modules or Compressed Courses

• Return of Title IV Funds: Taking Attendance

• Disbursements of Title IV Funds
To obtain federal student aid funding through student enrollment, institutions of postsecondary education must comply with regulations prescribed for each integrity issue. Issues marked with an asterisk (*) above are of greater interest to college admission professionals and are discussed in this fact sheet.

Issues of Ethical Practice
NACAC’s Statement of Principles of Good Practice (SPGP) states that members will:
• "Not offer or accept any reward or remuneration from a college, university, agency, or organization for placement or recruitment of students. Members will be compensated in the form of a fixed salary, rather than commissions or bonuses based on the number of students recruited" (section I.A.3.).
• "Accurately represent and promote their schools, institutions or services by providing precise information about their academic majors and degree programs. Such information shall include a factual and accurate description of majors, minors, concentrations, and/or interdisciplinary offerings that apply toward the completion of the undergraduate degree" (section I.A.1.).

These mandatory practices for NACAC members align with statutory language in the Higher Education Act and federal regulations on incentive compensation and misrepresentation.

Incentive Compensation

NACAC’s primary interest in the rulemaking process was strengthening regulations governing incentive compensation for admission and financial aid officers. Our historic concern with the treatment of admission officers as professionals, rather than salespersons, is rooted in the interest of students in transition to postsecondary education.
The Higher Education Act (HEA) statutory ban on incentive compensation states:
"[An] institution will not provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance, except that this paragraph shall not apply to the recruitment of foreign students residing in foreign countries who are not eligible to receive federal student assistance. (20 USC §1094(a)(20))"

Regulations known as "safe harbors" enacted in 2002 effectively gutted the statutory language and have allowed widespread use of commissioned sales in admission. The safe harbors were neither necessary nor appropriate given the clarity of the law, as expressed by NACAC during the regulatory comment period at that time. In the eight years since the enactment of the regulatory safe harbors, there is evidence of widespread disregard for the incentive compensation statute, which is documented on NACAC’s Program Integrity page.

The Department points out that aggressive recruiting practices have resulted in students being encouraged to take out loans they could not afford, or enroll in programs where they were either unqualified or could not succeed. Though current laws prohibit schools from compensating admission recruiters based on success in securing student enrollment, safe harbors allowed this practice to go on under certain circumstances, which the Department believes violates Congressional intent and spirit of the law.

The new regulations remove all the safe harbors provisions and align more closely with statutory language. These regulations:

State that institutions "will not provide any commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or the award of financial aid, to any person or entity who is engaged in any student recruitment or admission activity, or in making decisions regarding the award or title IV, HEA program funds."

Define the following terms:

Commission, bonus, or other incentive payment: "Sum of money or something of value, other than a fixed salary or wages, paid or given to a person or entity for services rendered."

Securing enrollments or the awards of financial aid: "Activities that a person or entity engages in, at any point in time through completion of an educational program, for the purpose of the admission or matriculation of students for any period of time or the award of financial aid to students."

Entity or person engaged in any student recruitment or admission activity or in making decisions about the award of financial aid: "With respect to an entity engaged in any student recruitment or admission activity or in making decisions about the award of financial aid, any institution or organization that undertakes the recruiting or the admitting of students or that makes decisions about and awards title IV, HEA program funds; and With respect to a person engaged in any student recruitment or admission activity or in making decisions about the award of financial aid, any employee who undertakes recruiting or admitting of students or who makes decisions about and awards title IV, HEA program funds, and any higher level employee with responsibility for recruitment or admission of students, or making decisions about awarding title IV, HEA program funds.

Enrollment: "the admission or matriculation of a student into an eligible institution."

In NACAC’s analysis of the regulations, institutions must compensate staff and third parties involved in the admission process based on factors that do not include the number of students enrolled. An institution could use a variety of standard evaluative factors as the basis for compensation increases. The Department believes that institutions can determine if compensation is permissible by analyzing:
1) Whether it is a commission, bonus, or other incentive payment, defined as an award or a sum of money or something of value paid to or given to a person or entity for services rendered; and
2) Whether the commission, bonus, or other incentive payment is provided to any person based in any part, directly or indirectly, upon success in securing enrollments or the award of financial aid, which are defined as activities engaged in for the purpose of the admission or matriculation of students for any period of time or the award of financial aid.

If the answer to each of these questions is yes, the commission, bonus, or incentive payment would not be permitted.

The Department notes in its discussion of comments that the regulations on incentive compensation apply to all employees at an institution who are engaged in any student recruitment or admission activity. The Department also expresses value for partnerships between institutions and third parties and states that such arrangements are permitted under the new regulations as long as no entity or person engaged in any recruitment or admission activity is compensated in any part, directly or indirectly, based upon success in securing enrollments or financial aid. Multiple salary adjustments in a calendar year are in violation of the ban if those adjustments create compensation based in any part on success in securing enrollment or financial aid.

NACAC members will readily acknowledge that the number of students enrolled in a given academic year is a matter of great importance to all institutions of higher education. However, as some institutions have made numbers the name of the game, the Department states that under the regulations regarding incentive compensation, institutions would need to re-examine their practices to ensure they comply with new rules.
Misrepresentation of Information to Students and Prospective Students
Lack of access to information about higher education is a well-documented challenge among under-served populations. The lack of information about college makes low-income students particularly susceptible to misrepresentation of information about a college or course of study. Many students trust that colleges and universities they attend will steer them in the right direction to obtain a certificate or degree. In particular, non-traditional or under-served populations who may be years removed from the structure of high school and/or whose high schools may not be equipped for college counseling are often at the mercy of recruiters or admission offices for guidance.

During public hearings and negotiated rulemaking sessions, the Department heard numerous complaints from students enrolled in programs where they felt misled on what was and was not being offered, the way programs could be paid for and their job prospects upon completion. Whereas consumers may be prepared for a high-pressure sales pitch at a car dealership, home improvement store or other commercial setting, few are aware that a college recruiter might employ the same tactics. Taking advantage of this trust enables recruiters to exploit a potential student’s lack of awareness of the terms of the interaction.

To protect consumers, the proposed regulations strengthen the Department’s authority to take action against institutions engaging in deceptive advertising, marketing and sales practices. The proposed regulations state that substantial misrepresentations are prohibited in all forms, including those made in any advertising, promotional materials, or in the marketing or sale of courses or programs of instruction offered by the institution.

In the final regulations, misrepresentation is defined as:

"Any false, erroneous, or misleading statement an eligible institution, one of its representatives, or any ineligible institution, organization, or personal with whom the eligible institution has an agreement to provide educational programs, or to provide marketing, advertising, recruiting or admissions services makes directly or indirectly to a student, prospective students or any member of the public."
Basically, anyone making any statement in any form of communication (print, verbal or other means) that has the capacity, likelihood or tendency to deceive or confuse will be in violation of this regulation. The broad definition requires clear and factual information be presented to students and covers the following types of information:

Nature of educational programs, such as accreditation, program content, program termination, transferability of credits, and certification for practice in a field;
• Nature of financial charges, such as costs and refund policies, availability and type of financial assistance, and rights in applying or rejecting any particular type of financial assistance; and

• Employability of graduates, such as future conditions, compensation, or employment opportunities; and requirements that are generally needed in the field.
Together, regulations on incentive compensation and misrepresentation will reduce the motivation for institutions to use aggressive and misleading recruitment tactics to increase enrollment. These protections will prevent institutions from enrolling students who are unable or unlikely to benefit from an educational program and from misusing taxpayer funds.
Other Admission Issues
Definition of a High School Diploma
A recent Government Accountability Office (GAO) report indicated that student aid programs are susceptible to fraudulent credentials as unscrupulous institutions attempt to enroll students without adhering to federal rules. Under new regulations on the definition of a high school diploma, institutions are required to develop and follow procedures for evaluation of the validity of a student’s high school completion if the institution or the Department of Education has reason to believe that the high school diploma is not valid or was not obtained from an entity approved to provide secondary education. Procedures could include obtaining a copy of the student’s diploma or transcript.

While the Department does not specify which office, financial aid or admission, will need to handle diploma validity evaluation, it is likely that at most institutions these offices will work together to develop a procedure for evaluating high school diplomas. NACAC believes this regulation is appropriate, as many institutions already have policies and procedures for verifying the authenticity of a high school diploma as part of their admission process.
To help institutions identify diplomas that are suspect, the Department will establish and maintain a list of secondary schools and add two questions to the FAFSA (print and online):

In the online version, students will not be able to skip this question. Students who indicate they will have a high school diploma will be instructed to provide the name of the high school and the city and state where that school is located.

In the online version, there will be a drop-down list of public and private high schools, populated by the Department’s National Center for Education Statistics. Students who cannot find their high school will be able to write in the information requested.

If replies to these questions do not correspond with the Department’s list, the Department may select the student’s FAFSA for further review by the institution to determine if the student has a valid high school diploma before the student can receive any Title IV federal student aid. In addition, if an institution has reason to suspect the validity of a high school diploma, regardless of FAFSA completion, the institution is responsible for determining validity.

The Department will provide institutions with guidance on developing and implementing procedures for this regulation, as necessary, in Dear Colleague Letters, electronic announcements, and the Federal Student Aid Handbook. NACAC is collecting policies and procedures from members to share in the NACAC Knowledge Center. NACAC will publish a policy brief with additional information about this regulation and its implementation in the coming weeks.
Ability to Benefit Test
Students who do not have a high school diploma or general equivalency diploma (GED) wishing to enroll in postsecondary education are required to pass an "ability to benefit" (ATB) test of basic math and English skills for eligibility for loans, grants, and campus-based aid under Title IV of HEA. The October 2009 Government Accountability Office report revealed that during an investigation, test administrators and institution officials violated rules by providing students with answers and altering students’ answers on ATB tests. When students without skills needed to succeed in postsecondary education are allowed to enroll, the institution receives federal student aid dollars and the students are at greater risk for dropping out and defaulting on student loans.
Given the abuses noted in the report, NACAC supports the Department’s efforts to limit test administration abuses by holding institutions responsible if it or an employee compromises the testing process, as noted in the final regulations. Among many regulations, the new rules:

• Define precisely the various aspects of the test administration, including: assessment center, ATB test irregularity, test administrator, and test publisher;
• Require the Department follow specific test approval procedures of test publisher applications;
• Require tests be given by an assessment center by a certified test administrator who maintains the test in a secure location and submits the tests for scoring within two days of administration.

Gainful Employment
The entirety of final gainful employment regulations are not yet released; however, the initial rules released in October require proprietary and postsecondary vocational institutions providing programs of training that prepare students for gainful employment in a recognized occupation, as stated in Sections 102(b) and (c) of the Higher Education Act, annually submit to the Department of Education information about students who complete programs in this category. Examples of these programs include training in: auto mechanics, cosmetology, culinary arts, and heavy equipment operation.

In addition to the reporting requirement, the new regulations require the aforementioned type of institutions disclose on their Web sites information about:
1) The occupations that its program prepare students to enter, along with links to occupational profiles on U.S. Department of Labor’s Occupational Information Network (O*NET) online

2) The on-time graduations rate of students entering a program
3) The cost for completing each program, including costs for tuition and fees, room and board, and other institutional costs typically incurred by students enrolling in the program
4) The placement rate for students completing each of those programs, as determined by the Department of Education’s National Center for Education Statistics; until then, if an institution’s state or accrediting agency requires calculation of placement rates, those rates shall be used
5) The median loan debt incurred by students who completed each program, identified separately as Title IV Higher Education Act loan debt and debt from private education loans and institutional financing plans.

The Department is still developing metrics to hold programs accountable for meeting federal requirements and intends to publish a final rule on this topic in spring 2011.

 (Title IX

Title IX is a portion of the Education Amendments of 1972, Public Law No. 92‑318, 86 Stat. 235 (June 23, 1972), codified at 20 U.S.C. sections 1681 through 1688, co-authored and introduced by Senator Birch Bayh; it was renamed the Patsy Mink Equal Opportunity in Education Act in 2002, after its House co-author and sponsor. It states (in part) that:
No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving federal financial assistance.

Wednesday, April 23, 2014

1098T!!!! websites that post your 1098T tax Information & ECSI Student Tax Information (1098T & 1098E)

feature book - tax & move information

Steiner's Complete How-To-Move Handbook Paperback – May 1, 1999


IRS Help Desk (1-800-876-1715 or email)

Low Income Taxpayer Clinics

LITCs conduct educational and outreach activities

low income and ESL taxpayers. These activities serve

multiple purposes: empowering individuals with

knowledge about their rights and responsibilities as U.S.

taxpayers, enhancing tax compliance, and generating

cases for controversy representation and consultations.

Clinics conducted nearly 3,500 educational activities

for over 102,000 attendees in the 2012 grant year,

and nearly 2,000 educational activities for 58,000
taxpayers during the first the half of 2013. LITCs that
operate ESL programs generally direct their education
and outreach activities to specific groups of taxpayers,
many of whom are new residents of the U.S. These

efforts provide information and education to help ESL

individuals understand their federal tax responsibilities.

Clinics address a wide range of substantive tax issues

in their educational programs and materials (e.g., filing

requirements, tax recordkeeping, family status issues,

refundable credits, worker classification, identity theft,
information about the audit and appeals process, and

collection alternatives). Clinics prepare and distribute

materials in languages appropriate for the ESL

communities they serve.

Students and families with children
EITC, the Earned Income Tax Credit, sometimes called EIC is a tax credit to help you keep more of what you earned. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file

Earned Income Tax Credit (EITC) – Use the EITC Assistant to Find Out if You Should Claim it.

Online Students?

Filing Out of State?

Nonresident Alien - Figuring Your Tax

Nonresident aliens can deduct certain itemized deductions if they receive income effectively connected with their U.S. trade or business. These deductions include:
  • State and local income taxes,
  • Charitable contributions to U.S. non-profit organizations,
  • Casualty and theft losses,
  • Miscellaneous itemized deductions, and
  • The ordinary and necessary expenses related to a U.S. trade or business.
Use Schedule A of Form 1040NR to claim itemized deductions. If you are filing Form 1040NR-EZ, you can only claim a deduction for state or local income taxes. If you are claiming any other deduction, you must file Form 1040NR. For a discussion about certain itemized deductions refer to IRS Publication 519.


W-2 in Box 12/Code “P”


by Robert W. Ditmer, CPP*
In the case of some fringe benefits that are offered to or given to employees, certain benefits can be excluded from an employee�s income because the expenses would normally be deductible on an individual�s personal income tax return. A moving or relocation expense is one such benefit. An individual who relocates because of a change in employment may attach a Form 3903 to his annual Form 1040 to deduct certain qualified moving expenses. And employers may either pay or reimburse an employee�s moving expenses without taxing the payments if the expenses would otherwise have been deductible using Form 3903.
Employers who pay for the relocation expenses of an employee have the freedom to pay for whatever expenses they wish, but only those expenses that qualify as deductible can be excluded from the employee�s income. All other expenses paid or reimbursed are subject to withholding for federal income, social security, and Medicare taxes. The employer is also responsible for including such payments for FUTA taxes, and in most states the expenses are also subject to tax withholding.
So employers must be able to answer the following questions in order to determine if relocation payments are subject to tax withholding:

  • Who can deduct moving expenses?
  • What moving expenses are deductible?
  • How should moving expenses be reported?
  • The answers to the first two questions can be found in IRS Publication 521, �Moving Expenses.,� so we will only cover the basics in this article, and we will be focusing only on employees whose expenses may be paid or reimbursed by employers. For an employee�s relocation expenses to be qualified moving expenses, the employee must meet three tests:

  • The move is closely related to the start of the employee�s work.
  • The location of the employee�s new home must meet the distance test.
  • The individual�s employment must actually or potentially meet the time test.
  • Closely Related to the Start of Work
    Moving expenses that are incurred within one year of when the employee starts working for your company may be qualified moving expenses. The move must have been necessitated by the new job because the employee is required to live near the place of employment or the employee will spend less time commuting than he would have if he had remained in his old home. If an individual relocated before having obtained a job with your business, his moving expenses may still qualify for tax-free reimbursement as long as he started working for your business within 1 year of his move.
    Distance Test
    The employee�s move may qualify for special tax treatment if it meets the distance test. The distance test is based on the location of the employee�s former home, the location of his old place of work, and the location of his new place of work. It has nothing to do with the location of his new home. The employee�s new place of work must be at least 50 miles further from his old residence than his old place of work was from his old residence. For instance, suppose that the employee used to travel 18 miles from his old home to his old place of work. His new place of work must be located at least 68 miles (18 + 50) from his old residence.
    Time Test
    To meet the time test an employee must work full-time at least 39 weeks during the first 12 months after arriving in the general location of his new job. Full-time does not necessarily mean 40 hours per week. In some areas and in some businesses, full-time may be defined as 30 hours per week as long as the employee is receiving all benefits to which full-time employees of your business are entitled.
    The 39 weeks does not all have to be with your company and they do not all have to be in a row. For instance, an individual may move into his new home and start work with one employer for 6 months. He then leaves that job and 2 months later is hired by your company. Your company agrees to pay his original moving expenses if he agrees that he will remain with your company for at least 2 years. So he will have worked at least 44 weeks during the 12-month period after his move, so he could have qualified moving expenses.
    Qualified Moving Expenses
    The following expenses qualify as moving expenses as long as the employee meets the other tests:

  • Moving the employee�s household goods and personal effects (including in-transit storage expenses), and
  • Travel for the employee and his family (including lodging but not meals) from the employee�s old home to his new home. So meals are never deductible, and house-hunting trips do not qualify as deductible expenses.
  • Moving expenses, according to the Internal Revenue Code, must be reasonable, but the definition of reasonable is not defined. However, Publication 521 basically indicates that expenses are reasonable if the cost of traveling from the employee�s former home to his new one is by the shortest, most direct route available by conventional transportation. Where the regulations refer to members of an employee�s household, it refers to any individuals who were living with the employee in his old home and are relocating with the employee to his new home.
    The following moving expenses are considered to be reasonable and deductible:

  • The cost of packing, crating, and transporting household goods and personal effects and those of members of the household from the former home to the new one. A professional moving company can be used, or the employee may use his own vehicle for moving some items.
  • The cost of storing and insuring household goods and personal effects within any period of 30 consecutive days after the employee�s things have been moved from his former home and before they are delivered to the employee�s new home.
  • The cost of connecting or disconnecting utilities.
  • The cost of shipping an employee�s car or pets to his new home.
  • The cost of moving household goods and personal effects from a place other than the employee�s former home, but the deductible portion is limited to the amount it would have cost to move it from the employee�s old home.
  • The cost of transportation and lodging for the employee and members of the employee�s household while traveling from the former home to the new home. Lodging expenses include the cost of lodging for one day after the employee could no longer live in his old home and expenses incurred on the day the employee arrives in the area of his new home.
  • If an employee uses his own vehicle, or if additional personal vehicles are driven to relocate the employee�s family, the deductible mileage rate for 2007 is 20 cents per mile.
  • All expenses are for one trip by the employee and the employee�s household, although the employee and the members of his household do not have to travel together or at the same time.
  • Employers can handle an employee�s moving expenses in two different ways. Employers may pay all or some of the employee�s moving expenses directly, such as paying a moving company to move the employee�s household goods and personal effects. Or the employer may choose to reimburse the employee for all or some of his moving expenses. Payments that are made directly to a third party do not have to be reported to the IRS, but all reimbursements to the employee do.
    How to Report Moving Expenses
    Both qualified and non-qualified moving expenses have to be reported on Form W-2. Non-qualified moving expenses are subject to withholding at the time the reimbursements are made. Qualified moving expenses should be reported on the Form W-2 in Box 12 with Code P. Non-qualified reimbursements must be included in the employee�s wages in Boxes 1, 3 and 5. All qualified moving expenses, including payments made to a third party, must be included on Line 1 of Part I of Form 940 for FUTA tax reporting, but the entire amount should also be reported on Line 2 of Part I as excludable wages.
    So let�s take a look at a practical example. Suppose that an employer pays all of the moving and house-hunting expenses to relocate an employee to a new district office. The distance from the employee�s old home to his new one is 850 miles and he makes only one house-hunting trip and the overnight lodging expense is $168. On the day the employee moves his family his lodging expenses, including one night near his new home while he is closing on the purchase of his new home is $187. The company chooses to reimburse the employee for 20 cents per mile for both trips and his total meal expenses are $235. The company pays a moving company directly $4,200 to move the employee�s household goods.
    Calculate the total costs reimbursed to the employee:

  • Mileage reimbursement. (3 x 850 mi x $0.20/mi = $510.00)
  • Lodging costs. ($168 + $187 = $355.00)
  • Meal costs. ($235.00)
  • Total costs reimbursed to employee. ($510.00 + $355.00 + $235.00 = $1,100.00)
  • Calculate the qualified moving expenses reimbursed to employee:

  • Mileage reimbursement for one trip only at $0.20/mile. (850 mi x .20/mi = $170.00)
  • Lodging for moving his family. ($187.00)
  • Total qualified moving expenses reimbursed to employee. ($170.00 + $187.00 = $357.00
  • Total non-qualified moving expenses reimbursed to employee. ($1,100.00 - $357.00 = $743.00)
  • Calculation of tax withholding:

  • Federal income tax. ($743.00 x 25% = $185.75)
  • Social security tax. ($743.00 x 6.2% = $46.06)
  • Medicare tax. ($743.00 x 1.45% = $10.77)
  • Reporting of fringe benefit:

  • Include $743.00 in Boxes 1, 3 and 5 of Form W-2.
  • Include $185.750 in Box 2 of Form W-2.
  • Include $46.06 in Box 4 of Form W-2.
  • Include $10.77 in Box 6 of Form W-2.
  • Report $357.00 in Box 12 with Code P. (Note: Qualified moving expenses paid directly to a third-party should not be reported anywhere on Form W-2.)
  • Include total qualified expenses of $4,557.00 ($4,200 + $357) on Line 1 of Part I for Form 940.
  • Report $4,557.00 on Line 2 of Part I of Form 940 as excludable wages.
  • Employers are no longer required to provide employees with a copy of Form 4782, Moving Expenses. However, employers should provide employees with some kind of statement breaking down all payments and reimbursements. Every individual who receives moving expense reimbursements must complete Form 3903 and attach it to his Form 1040. If the employee has been reimbursed for all of his qualified expenses, then he has to report that fact and he will not be able to deduct the expenses on his personal income tax return. If, however, the employee later relocates and invalidates the time test, the qualified expenses report on Form W-2 in Box 12 have to be included in income in the year the employee invalidates the time test. The employee will then have to file an amended Form 1040 for the year in which he received the original reimbursements.
    Reimbursement of an employee�s moving expenses is often a valuable fringe benefit, and many companies use the promise of such reimbursements as an incentive in the hiring process. Companies that relocate employees to other company locations often provide this benefit. But employers can avoid the snares and pitfalls that often surround the taxation and reporting of this benefit if the follow the guidelines provided above and the guidelines provided in the appropriate IRS publications.
    Robert W. Ditmer, CPP, is the owner of RWD Financial Support Service, located in Raleigh, North Carolina. Mr. Ditmer provides support and consulting services in the areas of bookkeeping, accounting, payroll and human resources. With over 25 years of experience Mr. Ditmer has worked in a wide variety of industries, and he worked as a Controller in four different businesses including a land planning/landscape architecture firm in Philadelphia, PA, a private dining and catering facility in Wilmington, DE, an IT support company in Glastonbury, CT, and a commercial construction management firm in Columbia, MD. Mr. Ditmer has also spoken at conferences and provided training on various issues, and he has written a number of articles in the field of payroll and payroll taxation. He is a member of the American Institute of Professional Bookkeepers and the American Payroll Association, and qualified as a Certified Payroll Professional in 2000. He can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . is a free online resource featuring a compilation of research, collaboration and web tools for use by payroll professionals and more including information about payroll tax articles, federal tax information and state tax information.
    Start by looking at the definition of a "qualified move" as defined by the Internal Revenue Service, which requires: 
    • The move must be closely related in both time and place to the start of work at a new job location (work-related test).
    • The distance between the employee's new principal place of work and old residence must be at least 50 miles greater than the distance between the old principal place of work and old residence, and the employee's commuting distance must have increased by at least 50 miles (distance test)
    • In the 12-month period following the move, the employee must be a full-time employee for at least 39 weeks in that location or meet a qualified exception to the time limit (time test).
    Certain moving expenses, paid or reimbursed by the employer, are not taxable under the definition of U.S. wage income. To qualify as "non-taxable," the expenses generally must be accountable, substantiated and reasonable for the circumstances of the move. Expenses that can qualify as non-taxable include:
    • The transportation of household goods and personal effects (including in-transit storage and insurance expenses) from the old residence to the new residence. The costs of moving automobiles and pets are included in this category.

    • ? Note: Special rules apply for international relocations. 
    • Travel expenses for the employee and household members from the old residence to the new residence (in-transit). These expenses usually include lodging, but not meals, during the trip. It is not necessary that all members of the household travel together at the same time.
    Other expenses, such as house-hunting expenses, temporary living, car rental, reimbursement for the loss on home sale, tax gross-ups, etc., are taxable benefits, as are unsubstantiated cash payments (e.g., cash allowances).
    Can the employee take a deduction on their individual income tax return for reimbursed moving expenses?
    Reimbursed "non-taxable" moving expenses are not deductible on the employee's individual income tax return, if those expenses have not been reported as taxable wages. If the employee has been reimbursed for "non-taxable" moving expenses, either directly or via a third party, there are no tax implications on the employee's tax return (no moving-expense deduction should be claimed). If the amounts are reported as taxable in the W-2, the employee can take a deduction on their U.S. federal individual income tax return for the qualified moving expenses.
    What are the tax implications of a lump-sum relocation payment?
    Many companies have moved away from the administration side of a relocation program that required reimbursements and are instead using a "lump-sum" approach to support relocating employees.
    Some companies structure their program to cover taxable moving expenses, such as house hunting, temporary living, etc., and then reimburse the "non-taxable" expenses. The lump-sum reimbursement would be fully taxable to the employee, and depending on the company program, either the company or the employee would ultimately bear the associated tax cost of including these amounts in the employee's wages.
    Other companies have structured their lump-sum program to cover all relocation expenses. If the company uses this method, the lump sum would be fully taxable to the employee. The employee should be instructed to track the "non-taxable" expenses, as a claim for a moving expense deduction may be available on their U.S. federal individual income tax return. The applicable moving expense amount would then be a reduction to a taxpayer's adjusted gross income (AGI).
    Are there other areas of concern for an employee to be aware of associated with a company supported move?
    If there are "taxable" moving expenses paid by the company, these amounts should be reported as taxable wages in the employee's Form W-2. As mentioned, the tax part is often an after-thought until the W-2 is issued, which could be well after the move. The surprising numbers on the W-2 can leave employees in shock, before even getting to the tax return. Some items to be aware of:
    • U.S. federal individual income taxes are calculated based on graduated tax rates and tax brackets. As the taxable income increases, it can push taxpayers into a higher tax bracket.
    • The higher "gross" income and taxable income can impact the return by phasing-out deductions and credits. These phase-outs can impact items such as:

      • Child Tax Credits
      • Higher Education Credits
      • Tuition and Fees Deduction
      • Passive Activity Losses
      • Deductible IRA's
      • Student Loan Interest
      • Contributions to a ROTH IRA

    Item (a) is pretty straightforward – you can deduct what you spend to pack and ship household items and personal goods from the old location to the new location, as long as those costs are what the IRS would consider reasonable e.g. not in excess of market rates. You can also deduct the costs of storage and insurance of your household items and personal goods for any period of 30 consecutive days from the time they leave your old residence to the time they are delivered to your new residence, as well as any in-transit storage costs. Finally, you can deduct any costs of connecting or disconnecting utilities that are required solely because you are moving personal effects – if you have a gas dryer, for example, and you need to have the gas company do a disconnect on one end and a connect on the other, you can deduct those costs.
    Item (b) is a little different – you can only deduct the cost of transportation and lodging enroute for you and the members of your household. You cannot deduct meals and entertainment, nor can you deduct the costs related to any personal side trips you might make – if you stop and visit Grandma enroute, for example, you cannot deduct the lodging related to that portion of the trip. You can deduct one day’s worth of lodging costs in your old location if you could not stay in your house because your furniture had been moved, and you can deduct lodging costs for the day that you arrive in your new location, if you have any.
    If you drive your own vehicle, you can deduct the actual costs you accrued on the trip for gas and oil, as long as you keep a record of those costs, or you can deduct 24 cents per mile (for 2009) – keeping in mind that if you detour off the most direct route between the two locations for personal reasons, the costs related to that portion of the trip are not deductable. You do not have to travel at the same time as the other members of your household. However, you can only claim the expenses for one trip per household member. (By the way, a member of your household can be anyone who lives with you at both the old location and the new address.)
    You cannot deduct the costs of trips made for househunting purposes before you have moved, nor can you deduct the costs of selling your old home, buying a new home, or any improvements that you needed to make to your old home in order to sell it. Nor can you deduct the costs of breaking a lease or lost security deposits if you are renting in the old location. You also cannot deduct the cost of return trips to the old location.

    Why Telecommute?
    businessman arms outstretched - Medium.jpg
    • Save time and money by not driving to work each day
    • Find more personal time with a more flexible work schedule
    • Avoid the stress associated with commuting through traffic
    • Persons with mobility issues or disabilities can find opportunities for employment
    • Employers may save money on facilities and gain productivity from key employees
    • Retain employees who require flexible schedules or move to another location
    • Employers can reach untapped labor pools to support their business
    Now... Are you looking for a way to work at home to make your life simpler while still earning money?
    Are you interested in the benefits of telecommuting work options for employees and employers?
    What is telecommuting?Telecommuting is essentially working from home full-time or several days out of the work week. Someone who telecommutes may be an independent contractor, an entrepreneur, or an employee of an organization that has telecommuting work options. More and more workers are telecommuting. Why?

    Reasons To Telecommute:
    Flexible Work Hours: If you are telecommuting then your schedule becomes more flexible. This flexibility allows you to choose when it is most practical and time-efficient to run errands, see doctors, and transport children. Most work-from-home jobs offer individuals opportunities to work part-time, full-time and often around the clock.
    Spend Less Money: Telecommuters can save money on transportation costs such as gas, parking, public transportation, work clothes, and dry cleaning bills.  Employers can save money by reducing overhead and retaining employees.
    Rush Less: Telecommuters have greater flexibility to plan non work-related activities around their business schedule instead of searching for time in the early morning, late evening, or during lunch.
    Save Time: Telecommuters will save the time they now take to commute to their place of employment.
    Avoid Distractions: At times employees in an office setting can be distracted from their work by untimely interruptions from peers, impromptu meetings, or pulled away onto other projects.  Telecommuters may find themselves more productive.
    More Family Time: Working from home usually means telecommuters have more time with their family. You can adjust your hours to work during non-family time and be available for the people you care about.
    Help The Environment: Working from home part or full-time reduces the auto emissions and decreases gas consumption. By working from home, you can feel good about reducing your commuting costs and contributing to a cleaner environment.
    Stay Healthy: Working from home decreases the stress caused by inflexible hours, commuting time and costs, continual rushing to unmet family needs, sitting idle during a commute and provides time to exercise or pursue endeavors of particular interest to you.
    Potential Tax Deductions: Income deductions are available for home-based work-related expenses such as fax, scanner, phone, computer and office supplies.
    Reduce the Need for Outsourcing or Off-shoring Work: Working from home helps keep jobs domestic and reduces need or desire for business and industry to contract with other countries for work that can be done at sites other than the main office.
    If any of the above reasons for teleworking sounds appealing, you might be an excellent candidate for a career in telecommuting to work.

    More information on the reasons to telecommute for jobseekers, training, and employment service providers, employees, and employers can be found under the  Jobseeker, Provider and Employer sections of  Other on-line resources include and Staffcentrix.

    WELCOME TO STAFFCENTRIXWelcome to Staffcentrix. We're the training and development company that designed the first virtual-work training programs for the US Department of State and the US Armed Forces. Since 1999, we've been showing organizations and people how to work virtually.

    We also maintain the leading online destination for legitimate home-based jobs and projects,

    Our longstanding focus on virtual and home-based work -- at times a magnet for the dishonest -- has also led to our extensive expertise in Internet fraud and safety.

    Come in and let us know how we can help you. We promise you'll be glad you did.

    As an employer, why would you want to have employees telecommute?
    Why not join those who are experiencing the financial and human resource benefits of a workforce with flexible work options?
    Are you an employer who is looking to:

    • Exploring telecommuting as a winning human resource strategy for increasing productivity?
    • Attracting and retaining qualified workers, including those with disabilities?
    • Reducing overhead costs and hours spent commuting?
    • Preserving natural resources?
    • Strengthening community relationships?

    Telework or telecommuting has a variety of definitions but for most employers it means work that would normally have been performed from a central office setting can now be performed at home or remote location.  To telecommute includes the use of a computer, internet connection, telephone, scanner, or even fax machine.  It involves moving work to the workers instead of workers to work. Part-time or full-time telecommuting can be an informal or formal arrangement between the employer and the employee.

    Over the last 15 years increases in commuter traffic, business property taxes, employee benefits, and fuel prices have combined with advances in technology (including security protection) and concerns about work/family balance to motivate employers to explore alternatives, such as restructuring work and work sites.  Many employers have discovered that integrating telecommuting into their human resource structures for those tasks that lend themselves to working from sites other than the primary work site allow companies to decrease costs and increase profits.  At the same time, technology now makes it possible for both employers and employees, particularly those with short term and long term disabilities, to increase productivity and add value to the economy.

    Telecommuting Websites & Resources on the Internet
    RatRaceRebellion– The “Rat Race” used to refer only to the world of work -- and a 9-to-5, short-commute world at that! Now the Rat Race -- and hence the Rebellion -- takes many forms such as telecommuting and working from home.  The site offers job postings.

    Telecommute Connecticut! – Statewide initiative providing free assistance to Connecticut employers with the design, development, and implementation of telecommuting as a worksite alternative.
    Call:  1-800-ALL-RIDE or 1-800-255-7433.

    The American Telecommuting Association – For a free publication “How Can I Start Telecommuting?” Call: 1-800-ATA-4-YOU.

    TelecommutingMoms – If you're ready to join the growing ranks of telecommuting moms you have come to the right place. Its mission is to help any mom to become a telecommuting mom! The site provides resources, information, articles, tips, and work at home jobs. 

    TeleworkUSA – Rehabilitation research and training center on workplace supports and job retention.

    YouCanWorkFromAnywhere – Montero’s Consulting, helping you find a more flexible way to work via virtual team training, virtual offices and mobile technology.

    sample 1098 & W-2

    Tax Credit: Can you take a deduction for the interest you paid on student loans? These site will help you to find the information you need. (Documents labeled "PDF" require the Acrobat Plug-in.) Internal Revenue Service (IRS) Main Site Tax Information for Students Tax Benefits for Higher Education (Publication 970) (PDF) IRS Form 8863 - Education Credits (PDF) IRS Notice 97-60 Taxpayer Relief Act of 1997 (PDF) Tax Trails is a service of the IRS that helps filers determine tax consequences. The two Tax Trails below deal with education expenses, credits and interest deductions. Student Loan Interest (1098-E) Education Tax Credit (1098-T) IRS FAQs (Frequently Asked Questions) Student Loan Interest (1098-E) Education Tax Credits (1098-T)