Ed. Note:

My family and I are planning to take a vacation this summer. My employer has agreed to allow me to work remotely throughout the week instead of taking vacation time. What can I deduct?
Since this arrangement is for your convenience and you are using it to take a personal vacation, chances are that you cannot deduct any of your expenses. There may be expenses that you incur which are directly related to working remotely, such as internet fees at the hotel. Such expenses may be deductible.

In order to claim a deduction, you would first have to submit those expenses to your employer for reimbursement — then, if they denied reimbursement, you could claim them as a deduction on your tax return. Given the fact that employee business expenses are subject to the 2% of AGI limitation, it is doubtful that you would have enough expenses to claim this deduction.

My employer is sending me off on assignment for a week — but I’ve decided to bring my family along, too. What do I need to keep track of in order to deduct my business expenses?
As a general rule, your employer will reimburse you for any out-of-pocket business expenses you incur while away on business. The only expenses that will be considered business expenses are your expenses.

You can’t deduct any expenses for your family while on the trip. That being said, it is a good idea to have your receipts separate from the rest of the family for your airfare and meals while traveling for business. Most employers require this anyway in order to reimburse your expenses. Keep all receipts that are for you and directly related to your business trip. So, if your whole family goes out to dinner, make sure to document the portion of the bill that is for you (it’s best to get a separate receipt for your meal). However, if after work hours you all go to the local amusement park, you can’t deduct any of that expense.

Got a question for our tax experts? Ask away!

[Image: Giorgio Montersino via Flickr]

A sad reminder of the need to prepare for natural disasters is the one-year anniversary of the May 22, 2011, Joplin tornado. It claimed 161 lives, making it the most deadly tornado in decades, and so far its survivors have received $2.16 billion in insurance claims payouts.

According to the National Oceanic and Atmospheric Administration, $52 billion in damages resulted from natural disasters in the United States in 2011, also setting the record for the most billion-dollar disasters. It’s important to understand what documents are most important to have in your emergency kit and what to do after a disaster causes property loss or damage.

Organizing papers ‘before’ can make ‘after’ easier

The Federal Emergency Management Agency advises keeping insurance policies, deeds, property records, stocks, bonds and other critical documents in a safe deposit box. Paper copies of these documents, past tax returns and pictures/videos of valuables can be kept with disaster supplies in a fireproof, waterproof container for quick access in case of emergency. Scanning and saving these documents on a USB flash drive, CD or DVD allows for easier storage and portability.

After the storm, if you’ve sustained property damage or loss, start the claims process by calling your insurance agent. Also, consult a tax professional for guidance on what expenses generally are tax-deductible and how to claim a casualty loss on a federal tax return.

Using tax information helps get financial affairs on track

The earlier insurance claims are filed, the sooner the reimbursement process can begin and your home can be restored to its pre-storm condition. Here’s how that happens:

• Insurance reimbursement information is needed to accurately calculate a casualty loss claimed on a tax return
  • Losses in a federal disaster area can be claimed on an original or amended tax return for the year prior to the loss to get a tax refund sooner
• IRS disaster relief, in the form of extended tax deadlines, is generally offered to taxpayers in federally declared disaster areas qualifying for individual assistance
  • The IRS will waive the usual fees and expedite requests for copies of tax returns for people who need them to apply for benefits or to file amended returns claiming disaster-related losses
  • H&R Block clients – even do-it-yourself filers – can visit any office to request copies of their tax returns
• Taxpayers may be able to defer taxes on any gain from insurance proceeds by replacing damaged property with a like item
  • Generally, property losses not covered by insurance are tax-deductible.

As well as planning what to do when tornado sirens go off and evacuation orders are issued, taxpayers should ensure they have securely stashed away the tax and other financial documents they could need after a disaster strikes. Having important tax and financial information easily accessible after a natural disaster can help survivors recover and rebuild their lives – add them to your disaster emergency kit.

[Image: FEMA Blog]

With the school year winding down, the temperature creeping up and Memorial Day Weekend around the corner, summer vacation season is unofficially here.

Although the average American lets two whole vacation days go unused every year, you are definitely not that person. No. You will use that hard-earned vacation time. So start stashing away some cash, pack your swimsuit and prepare to head somewhere fabulous. Or at least think about it while reading our latest infographic.

Click image to see a larger version

Like this infographic? Use the code below to embed it on your site:
<a href="http://blogs.hrblock.com/2012/05/21/travel-talk-your-summer-vacation-education-infographic"><img src="http://blogs.hrblock.com/wp-content/uploads/2012/05/Summer-Vacation.jpg" alt="All about summer vacation" width="600" /></a>Source: <strong><a href="http://hrblock.com">H&R Block</a></strong>

We headed to the winner’s home with this ultra-discreet giant green block and presented the hot chunk of change, taking photos and videos all along the way.

We can’t wait to reveal and properly congratulate the winner on Monday, but for now, can you guess where in the world our winner is based on these pics of Giant Green Block on the move?

Update [5/21/12]: Congratulations to Richard in Washington State, who just received the $100,000 giveaway! Check out the video below to see how we surprised him in a big way. And thank you to the 1 million plus users who entered our sweepstakes when filing with H&R Block At Home this season.

In our latest infographic, we take a look at the high cost of higher education. Cheers to the engineers. Buy your friends a drink.

Like this infographic? Use the code below to embed it on your site:
<a href="http://blogs.hrblock.com/2012/05/16/the-price-of-higher-education-infographic"><img src="http://blogs.hrblock.com/wp-content/uploads/2012/05/The-Price-of-Higher-Education.jpg" alt="The Price of Higher Education" width="600" /></a>Source: <strong><a href="http://hrblock.com">H&R Block</a></strong>

The astronomical price tag. Oof.

Not to fear. While the average cost of prom has risen above $1000 per family this year, it can be done for under $200. Here’s how.

The Getup
A recent USA Today story pinned the average cost of a prom dress at $231. That’s a lot to drop on a showstopping dress you’ll be wearing only once. A few alternatives:

• Rent a dress. For $50-$100, promgoers can have a designer dress shipped to their front door from genius website Rent the Runway. Wear it to prom, put it in a pre-paid envelope the next day, and send it on back — no dry cleaning or major investments required. Tip: check our RTR on Facebook for exclusive fan discounts on Fridays.
• Participate in a Prom Dress Swap. Area high schools across the country are teaming up for prom dress swaps, giving their gently-used formal gowns a second chance to stun.
• Go vintage. Want to stand out? Swing by a thrift or consignment shop and pick up a one-of-a-kind vintage suit or dress. If you’ve got a sense of humor, a dorky prom getup from decades past will turn heads and let your personality shine.
• Getting a tux? Call around. Even though many proms are less formal and a suit will do you just fine, if you’re going for the full tux, don’t be afraid to call around to different formalwear shops to find the best price.

Glamorize and Accessorize Wisely

• Paint your own nails. A manicure can cost upwards of $35. Know this: nobody will be looking at your nails. Paint them yourself!
• Don’t splurge on your hair. Ask your stylist for a simple sleek blowout instead of a stiff updo. Even better: enlist a (trusted!) friend or relative to wield the curling iron — and do a trial run before the big night.
• Rock shoes with personality. If you’re a Converse All-Star guy, pair chucks with your prom getup. If you’re a glitzy heels type of girl, pick up a glittery pair with personality for under $20 at a discount retailer like Forever 21.
• Do makeup on the cheap. YouTube is rife with excellent makeup tutorials, with step-by-step instructions for everything from dramatic lips to smokey eyes. Don’t trust your own hands to do a bangup job? Most department store cosmetics counters will give you a complimentary makeup application (with the expectation that you make at least one small purchase).
• Supermarket flowers. Hit your local grocery store’s floral department for corsages and boutonnieres at slightly lower prices than you’ll find at a specialty flower shop.

Keep the Pre-Prom Festivities Under Control

• Skip the photographer. Shareeke Edmead-Nesi of The Conscious Spender advises: “take your own photos and share them instantly on Facebook and Instagram” — and skip the professional photog.
• Dine somewhere fun, not fancy. Save the multi-course meals at an upscale restaurant for your graduation celebrations! Try going out to a local landmark, like a famous barbecue joint or dive diner, for a pre-prom meal that’s a special treat, not a splurge. Or organize a backyard barbecue or potluck (and kick the parents out after picture time).
• Arrive in style. You know how your Uncle spends all his time fixing up that vintage car? Ask (nicely) to borrow it for the night — and forgo the flashy limo.

So, can a young woman attend prom for under $200? Absolutely. Let’s assume she splits the dinner bill with her date and that she pays for her own dance ticket.

Dress, $64.95 – Rented from Rent the Runway (including shipping)
Manicure, $0 - Done at home, using her own nail polish
Hair, $25 – Salon blowout
Shoes, $19.80 – Forever 21
Makeup, $14.50 – Free application (department store), $14.50 lipstick purchase
Boutonniere, $10 – Supermarket
Dinner, $15 – BBQ joint
Photographs, $0 – Snapped using Instagram
Dance Ticket, $50
TOTAL: $199.25

How are you planning to save on prom costs?

[Image: wishymom via Flickr]

In our latest infographic, we take a look at Mother’s Day spending vs. Father’s Day spending. Enjoy.

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Like this infographic? Use the code below to embed it on your site:
<a href="http://blogs.hrblock.com/2012/05/11/the-dollars-we-drop-on-mom-and-pop-infographic"><img src="http://blogs.hrblock.com/wp-content/uploads/2012/05/Mothers-Day-vs.-Fathers-Day.jpg" alt="Mother's Day Vs. Father's Day" width="600" /></a>Source: <strong><a href="http://hrblock.com">H&R Block</a></strong>

The ascent of the Mommy Blogger has been rapid, and her wild popularity, power and influence cannot be ignored. According to CBC, “five years ago, toy companies handed out 98 percent of their samples to TV stations, newspapers and magazines. Today 70 percent of those free samples go to bloggers.”

And of the almost 4 million Mommy Blogs in North America, a handful have considerable power and reach. In our latest infographic, we take a closer look at the top 10 Mommy Bloggers — and we’d like to be the first to wish them a happy Mother’s Day.

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Like this infographic? Use the code below to embed it on your site:
<em>Click image to enlarge</em><a href="http://blogs.hrblock.com/2012/05/08/mommy-blogging-by-the-numbers-infographic"><img src="http://blogs.hrblock.com/wp-content/uploads/2012/05/024_IG_TechMoms_FINAL_FULL-01.jpg" alt="Earth Day 2012" width="600" /></a>Source: <strong><a href="http://hrblock.com">H&R Block</a></strong>

While I ended up learning money management skills the hard way, H&R Block is working to ensure today’s high schoolers can get a head start on financial fitness. H&R Block Dollars and Sense was created to help high school students across the country learn practical, real-world financial skills before they’re even out of high school — and the program has awarded nearly $3 million in personal finance curriculum and scholarships to high schools and students since its inception in 2009.

Among the most innovative and engaging components of Dollars & Sense is the National Challenge, a face-off of financial wits between students from high schools across the U.S. and Canada. Battling for more than $55,000 in college scholarships from H&R Block, competitors are tasked with navigating an avatar through multiple financial situations to accumulate virtual wealth. This year, more than 3,600 teams competed online in the simulation challenge to earn one of the coveted 16 spots in the live National Challenge Finals, which took place in Salt Lake City earlier this week.

In the end, Mary Davidson, Juan Castillo and Amanda Pita from Southwest Miami High School each earned a $10,000 scholarship for their first place win, accumulating more than $98,000 of virtual wealth in the final round of the competition. Second place went to fellow Southwest Miami students Alex Sanchez, Sergio Salazar and Tristan Coll, who each took home a $5,000 scholarship. An additional $8,000 in scholarships was awarded to the third and fourth place teams.

To execute the national challenge, H&R Block partnered with DECA and Knowledge Matters, two leaders in the education field. For more information about the program, visit www.hrblockdollarsandsense.com or www.facebook.com/hrbds.

Though last year’s taxes may be out of sight and out of mind, Future You will certainly be grateful that May 2012 You planned ahead, got organized and stayed ahead of the game before the stress of tax time came back around.

Our friends at the IRS just released a list of helpful tips to help you get a jump on next year’s return. Some of our favorites:

Adjust your withholding. Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you’d prefer more money in each paycheck this year. If you owed at tax time, perhaps you’d like next year’s tax payment to be smaller. Use IRS’s Withholding Calculator or Publication 919, How Do I Adjust My Tax Withholding?

Prepare to itemize deductions. If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings. See the Schedule A instructions for expenses you can deduct if you’re itemizing and then prepare an approach that works best for you.

Strategize tuition payments. The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires. For more information, see IRS Publication 970, Tax Benefits for Education.

One of the most important tax-related projects you can take on today is to revisit (or establish) your organization system for tax documents and important applicable records. If the ol’ shoebox or accordion folder has been working for you, by all means, stick with it — but if you had some difficulty wrangling your receipts and records this year, now is the time to look into other options. Our favorite modern solution: Evernote, an ultra-easy app that keeps your documents organized on your smartphone or mobile device. Find out how you can use Evernote to organize your tax documents here.

What are you doing to get a jump on next year’s tax return?