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Tax Tips For Job Seekers

This http://www.WorkTree.com career article gives job seekers some tips and things to consider when it comes to tax time.

Taxes are one thing you can't avoid.
When economic conditions are tough, the last thing anyone wants to do
is pay taxes. Luckily, you could be better off than you realize.

There are some very favorable rules embedded in the tax code for job
seekers. When dealing with taxes, sometimes it pays to be between
jobs.

This month's newsletter is a repeat of last April's newsletter. It
briefly discusses some of the possible tax benefits for the
unemployed. These are just tips that you may want to look into,
please talk to a tax expert before filing your return. Don't pay
more than you have to!

The following topics will be covered:

1. Basic Tax Deductions
2. The Big Bucks
3. Playing It Safe

================================================
IMPORTANT TAX TIPS FOR JOB SEEKERS
================================================

1. BASIC TAX DEDUCTIONS
Many of the costs associated with a job search can be deducted from
your income. As long as you are not entering the job market for the
first time, searching for work in a different field of employment, or
returning to work from a long spell of unemployment, many typical job
search costs are tax deductible. Individually these costs can be
small, but they can add up very quickly.

Eligible expenses may include:

1. Phone calls and faxing fees
2. Costs for typing, printing, and mailing resumes
3. Employment agency fees
4. Ad space in newspapers, trade magazines, or on web sites
5. Traveling costs for job interviews (This does not just include
airfare or public transportation. The costs of driving to an
interview can be deducted on a mileage basis.)

The list continues on, but you get the picture.

The 2 most important things to remember are:

1. These expenses are only deductible if you itemize them.
2. Only job search expenses exceeding 2% of your adjusted gross
income are tax deductible. (please check with a tax expert on the
finer details)

2. THE BIG BUCKS
The deductions don't begin and end with your minor expenses. As well
as the small costs of printing, postage, etc., large expenses
associated with the job hunt can also be deducted.

The two primary "major expenses" are as follows:

1. EDUCATION - If you went back to school before taking a new job,
your educational expenses can be curbed with tax deductions. Based
on your adjusted gross income, you could be eligible for
deductions of up to $3,000.

2. MOVING - Once you have finally found that new job, some of your
moving expenses may be deducted for tax purposes. The only
eligible expenses are ones that your current employer did not
already cover. Furthermore, moving costs for a new job are only
deductible if your new place of work is at least 50 miles from
your old home. If these requirements are met, things like packing
costs, mileage expenses, parking fees, tolls, and lodging while
traveling are all tax deductible.

3. PLAYING IT SAFE
Tax deductions can be very tricky and very tempting. The worst idea
you could get into your head is to start being a risk taker when it
comes to your tax return. You may not always get caught bending the
truth, but if you do, the IRS will have very little sympathy.
Deductions related to the job search may also raise a bright red flag
to the IRS. These types of expenses tend to get examined more
thoroughly than others.

So as you file your return, keep these things in mind:

1. Don't get creative and try to pile on expenses that are not truly
exclusive to your job search. For example, a new suit may be
needed for interviews, but its usefulness is not strictly confined
to your job search.

2. Save your receipts. In the case that your deductions do draw
suspicion, you can save yourself a lot of pain, time, and money if
you have proof of all your expenses.

3. CHECK WITH AN EXPERT. We here at Worktree.com are job search
experts, not tax accountants. Before you file a return with new
types of deductions, it would be smart to get professional advice.

============
CONCLUSION
============
Don't be afraid to try and save money, however, please speak to an
expert if you have any questions. As long as you play by the rules
and only deduct legitimate expenses, you are in the clear. Being out
of work is an economic burden on its own. Money can be even tighter
when you have to spend large amounts on your job search but these
tips may help you recover a portion of this. Use those deductions to
your advantage, and do it quick - April 15th is just around the
corner!

You can read this article directly online at:
http://www.worktree.com/newsletter/job-seeker-tax-tips.html

Sincerely,
Nathan Newberger,
Managing Editor
http://www.WorkTree.com

"Helping You Find More Jobs Faster"


About the Author
Nathan Newberger is the job and career expert at http://www.WorkTree.com Nathan has over 10 years experience in staffing and human resources. He has worked both as a recruiter and career counselor. Mr. Newberger has been the Managing Editor at http://www.WorkTree.com for the past 5 years and his articles have helped thousands of job seekers.

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