The Good News: This July, Employers cut far fewer jobs from payrolls according to a government's Labor Department Report. Additionally, the unemployment rate just fell for the first time in more than a year. The net job loss for jobs in July is 247,000, which is the fewest since August 2008.
The Bad News: This is good, and better than the expected 325,000. But the fact remains, 247,000 people lost their jobs last month! For the many that are unemployed, he's a quick guide to tax breaks you can qualify for while you're on the hunt for a new job.
Tax Breaks for the Unemployed
Tax Deductible Job Searching... Here's what you can write off while you're on the hunt:
-Resume Services: Go ahead and have your Resume made by a professional.
-Want-Ad Placement Fees: Place your ad in the paper without worry
-Travel Expenses: Applies to going out of the city to hunt for a job
-Agency Fees: The IRS covers employment agency fees
-Printing costs: For business cards, resumes, and letters
-Mailing Fees: For sending out resumes
-Telephone Calls: For if you have to call long-distance
The Catch: There's always a catch. And with the IRS, there's a few big ones. Sorry to get your hopes up, but you have to comply with these rules if you want to deduct the costs from your job hunt.
-Keep Track of Time: Deductions are not allowed if there's a big break between when your last job stopped and your new one began. Basically, get to looking for your job fast. Don't take a long break.
-The Same Field: Your new job has to be in the same line of work as your last job. For example, if you're a writer you will not qualify if you look for a job as an astronomer.
-Recent Graduates: I have some bad news for recent graduates. You do not qualify if you are looking for your own job. Tax law states that you only qualify if you are looking for a job in a field you are already employed in.
So Basically... If you're a Retail Manager and want to move to a different store location that is closer to your house, you qualify. You have to already be employed in the field you seek extra work in.
Word of Caution: I sound like a broken record, but listen up. When I worked as an IRS Hitman, most people were in debt because they made false deductions. Exaggerating your deductions is one of the surest ways to get caught by the IRS. Don't make sudden decisions, follow certified professional advice instead. And keep track of all your spendings!