Monday, February 21, 2011

When Looking For Work Is Your Job - Tax Advice For Job Searches

Written by NAPSI

Sacramento, California (NAPSI) - Searching for and starting a new job can cause people to spend money when they may be short on funds. A bright spot is that some of those expenses may be tax-deductible. Unemployed And Searching For A New Job
Taxpayers—particularly the unemployed and underemployed-should file tax returns to claim all tax credits and deductions they are entitled to on their tax returns, to ensure they get the largest tax refund they are due.
Remember, all income must be reported to the IRS, regardless of the source. It does not matter if it’s from unemployment compensation (all of which is subject to federal income tax this year), tips, a lawn-mowing business or working as a nanny.
While looking for a new job, keep good financial records because items used exclusively for the job search are tax-deductible if the job is in the same field. Among these expenses are resumé development, professional placement services and unreimbursed mileage, airfare and hotel expenses for interview travel.
Moving For A New Job
If relocating for a new job, unreimbursed moving expenses may be eligible deductions that do not have to be itemized. These are the eligibility requirements:
• Any moving expenses incurred within one year from the first day of work
• The new job would have increased the taxpayer’s commute by more than 50 miles
• If the taxpayer was previously unemployed, the new job must be at least 50 miles from the taxpayer’s old home
• Taxpayers must be employed at least 39 weeks during the first 12 months after the move.
Starting A New Job
Expenses for unreimbursed items necessary for working, such as computers, mobile phones, training that allows workers to keep their current positions, union dues and required uniforms may be eligible tax deductions. To be eligible, these items must be required by the employer and used exclusively for work purposes. Use the H&R Block job deduction guide to learn what expenses are typically claimed for certain occupations.
Eligible job expenses must be claimed as itemized tax deductions and they must total more than 2 percent of adjusted gross income; only the portion of job deductions and other miscellaneous itemized deductions that exceed 2 percent of adjusted gross income may be claimed.

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