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How to Benefit from Job Search Tax Deductions

 

Job search tax deductions can help those who are unemployed by decreasing the amount of taxable income. Although you must pay taxes on unemployment compensation, these deductions may offset the amount of taxes you owe. There are some things you must know to benefits from these deductions.

Know What's Allowed

If you spent some time this year searching for a job, you can deduct certain costs from your taxes. You must be searching for a job in your current occupation in order to qualify. You can deduct costs for creating a resume and mailing it. Travel expenses can really add up when you looking for a job, as well as any agency fees for job placement. With mileage rates at around 50 cents a mile, these costs can become a tax benefit for you during tax season. Other qualifying items would be long distance phone calls to prospective employers, legal fees to keep your job, and licensing fees for your current job. Whatever deductions you choose to take, be sure to keep good records and receipts proving those costs were not for personal use.

Know What's Not Allowed

New graduates or first time job searchers do not qualify for these tax benefits. If there was a large amount of time between your last job and your current job search, you should check with a qualified tax preparer to determine if you are eligible. Those who are wanting to change career paths would not be eligible for this deduction. Other things you should not try to deduct are clothing, home office expenses and other similar costs.

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