Tax Breaks for Job Seekers

By now, you should know that social networking and personal branding can help you find a new job, but did you know that Uncle Sam can help to? It isn't widely known, but expenses you incur while looking for a new job can be tax deductible. In order to take advantage of this type of deduction there are a few things you should know. (Of course, you should contact an accountant or read the tax laws that apply to your personal situation at IRS.Gov before you file)

• In order to deduct job hunting expenses, you will have to file an itemized tax return. Additionally, your expenses need to be at least 2% of your adjusted gross income. On the plus side, there are many expenses you may have, both from the job you are leaving and the search for the new one, that can be deducted, making it a little easier to reach the threshold.
  
  
• You have to be looking for a job in the same field as your previous one. If you are changing job fields or you are looking for a job just out of college, you most likely won't qualify for the deduction. Also, if you have taken a break between your last job and the new search, you won't be able to qualify.
  
  
• You can write off just about any expense related to your job search. Resume writing services, professionals who assist you in perfecting your resume, job coaching, subscriptions to job boards and so on. Any newspapers, magazines or other subscriptions to keep in touch with jobs in your field can also be counted. You can even deduct travel expenses to other cities to look for jobs. The key is that you have to keep receipts and odometer readings for everything you are planning to deduct. It isn't good enough to have a credit card statement with the charges, you have to have an actual receipt.
  
  
• Starting your own business in the same field you have been working in is also tax deductible. The key is that it has to be within the same industry.

When you have been out of work for awhile, it is important to save money any chance you get. So find out how the tax laws apply to your situation and see if you can take advantage of Uncle Sam's help during your job search.

Are you looking for a job in the Philadelphia area? Why not check out PhillyJobs.

By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer, along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.