For the last several years, the state of the economy has been a topic of discussion. For the unemployed, the economy has been an area of pain. According to the Bureau of Labor Statistics, the June 2013 unemployment rate remained unchanged at 7.6 percent. The more interesting statistic is approximately 195,000 new positions were created in the month with the growth deriving from the leisure and hospitality, professional and business services, retail trade, health care, and financial services sectors.
That's rather encouraging for the long term unemployed! Let's face it, they need a break! Speaking of which, the IRS has six tax breaks that you can take if you're on the hunt for a new job. Some you may already know a few but there are a few other interesting ones that you may also qualify for.
1. Your expenses must be for a job search in your current occupation. You may not deduct expenses related to a search for a job in a new occupation. If your employer or another party reimburses you for an expense, you may not deduct it.
2. You can deduct employment and job placement agency fees you pay while looking for a job.
3. You can deduct the cost of preparing and mailing copies of your résumé to prospective employers.
4. If you travel to look for a new job, you may be able to deduct your travel expenses. However, you can only deduct them if the trip is primarily to look for a new job.
5. You can't deduct job search expenses if there was a substantial break between the end of your last job and the time you began looking for a new one.
6. You can't deduct job search expenses if you're looking for a job for the first time.
Very Important Point
You can only deduct job search expenses as miscellaneous itemized deductions on your personal Federal income tax return (Form 1040). In other words, you have to itemize your deductions on Form 1040 -- Schedule A and your itemized deductions generally must exceed the standard deduction. More importantly, you can only take the total miscellaneous deductions that exceed 2 percent of your Adjusted Gross Income!
Standard Caveat: Consult with your CPA or tax advisor to determine what deductions or tax breaks you're entitled to as your particular facts and circumstance may differ. This isn't tax advice -- The old adage -- you get what you pay for applies!
Again, thanks for reading and please leave comments below!