By: Matt See
Online Career Tips Staff
Being out of a job can be a burden in itself. Being out of a job at tax time can be even worse. Not only are you on a tight budget but having to count your pennies to pay yourtaxes can be even worse.
Don’t fear, there are some tax tricks that can help take the sting out of your penny pinching.
First things first, head over to the IRS website and take a quick read over the special section just for job seekers. If you are having trouble with the all of the legal jargon then seeing a tax expert may be another good option. A good accountant may be able to help find some additional refund help that you may not have uncovered during your research.
So what are some tips to get you started? Check out our top 3 tax tips for the job hunter.
Job Hunting Expenses are Deductible
Many job seekers may not know this fact but, your hunting expenses are deductible. Keep track of how much you spend on printing your resume, hiring search help, traveling to and from interviews and much more are deductible. But there is a small catch. To qualify for a deduction, the expenses must be spent on a job search in your current occupation. You may not deduct expenses incurred while looking for a job in a new occupation. Please not that some deductions such as cell phone and internet expenses will put you under the IRS’s watchful eye.
Moving Expenses
Did you just land a new job that you will have to move for? If that new job is over 50 miles away from your home then you can claim moving expenses! But wait, there is another catch. If you had to commute say 35 miles to your last job then your new job has to be at least 85 miles away from where you live now.
Deduct your Education
There is no better time to get that master’s degree you have always wanted when you are out of work. During the extra time you have while looking for work you can make yourself more attractive to perspective employers by furthering your education. There is an added bonus; you can deduct your education! Check into two credits (Lifetime Learning Credit, Tuition & Feeds Deduction) that the IRS offers you which total to over $6,000. And as if this has been a recurring theme in this blog, there is a catch. You need to be taking courses that will help you be more attractive in your current career field. And they have to be from an accredited institution. To maximize your payout it is recommended that you consult a tax professional.
[Explore over 75 online, accredited degrees you can get while hunting for the right job]
So don’t look at tax time as being a burden when you are out of work and looking for a new job. With the right research and a little bit of help, you may be able to actually turn tax time into a positive.
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