Published on: September 6, 2017 Last modified: August 20, 2019

Tax Breaks for Those Searching for Jobs

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    On behalf of Silver Tax Group posted in Back Taxes on Wednesday, September 6, 2017.

    Individuals owing back taxes often are dealing with other issues as well. Many times Michigan taxpayers who owe the most to the IRS also are unemployed or underemployed. Such people have enough problems simply paying the bills and keeping their families fed – let alone having to deal with tax obligations.

    Fortunately for those who are looking for work, the IRS allows for certain job-hunting expenses to be deductible. Such expenses may be deductible, even if the taxpayer is unable to locate a new job.

    Here are some scenarios when such expenses are deductible:

    • Expenses are deductible when searching for a new job in the same kind of occupation. Such deductions do not apply when searching for a new kind of occupation.
    • Costs are deductible concerning creation and mailing of a résumé.
    • Expenses regarding travel including meals, lodging and transportation are deductible. This is true in some instances even if searching for a job was not the primary purpose of the travel.
    • Fees paid to placement and employment agencies are deductible.

    It is important to keep active when searching for a new job. A significant break in time when looking for a new occupation may mean such expenses are not deductible. And such expenses are not deductible when looking for a job for the very first time.

    What should taxpayers do

    Taxpayers must take care not to deduct reimbursed expenses. Also, there must be reporting of such expenses on the Schedule A regarding one’s 1040 tax return.

    Most taxpayers are unaware of available tax breaks. It is therefore helpful to speak to an attorney in making certain you are not paying more in taxes than is necessary.

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