Job Hunting and Taxes

Job Hunting and Taxes Its probably one of the most overlooked of valuable tax deductions: job search expenses. You see, the government wants you to work, and preferably at a well-paying job. The more money you earn, the more the government gets to claim in taxes. When you arent working, you have no income to tax. You also have no income to buy things so you also dont pay many other taxes either. To that end, the government has decided that allowing you to deduct some of your expenses for your job search is a good idea. Naturally, there are certain rules that apply to taking these deductions. For starters, you have to be looking for a new job in the same general career field. This means that recent graduates looking for their first job are out of luck (though a paid internship in the same field may qualify.) You also have to have begun looking for a new job immediately. The IRS also stipulates that the job search expenses have to amount to 2% of your adjusted gross income or more. Once all of that is met, you can write off employment agency and outplacement agency fees, resume services, printing and mailing costs of sending resumes and cover letters, want-ad fees, telephone calls and out-of-town travel expenses. These expenses are classified as miscellaneous itemized deductions and are listed on line 21 of schedule A. Because they are itemized, its extremely important to track expenses carefully and save receipts. If you find yourself looking for a new job in your old field, taking job search deductions might be just what you were looking for to improve your financial outlook. Note: Since I am not a CPA or a tax attorney, I cannot give you tax advice. Consult with your tax professional before making any decisions about your tax deductions. ??

Get the Scoop on Help Writing an Executive Resume Before Youre Too Late

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