Looking for a New Job? Your Job Search Expenses May Be Tax Deductible
If they meet certain criteria, you may be able to deduct your job search expenses from your taxes
People change jobs for many reasons. Some are laid off; others want a new challenge; and still others simply don't like the job they currently hold. Whatever your reason for looking for a new position, if your job search expenses meet certain criteria, you may be able to deduct them from your taxes.
Tax-Deductible Job Search Expenses
Here are the requirements your expenses must meet if you want to deduct them from your taxes.
- Same Occupation
- Resume Costs
- Travel Expenses
- Placement Agencies
You have to be looking for a new position in your current line of work. If you're changing career fields, related expenses are not deductible.
Although most people apply for jobs online now, there are still some who do it the old-fashioned way. These people will be happy to know that the costs of preparing and mailing your resume are deductible.
In order for the costs of traveling in search of a new job to be deductible, looking for work must be the main purpose of the trip. However, you might still be able to deduct some costs if it isn't.
Are you signed up with a placement agency? You can deduct some of their fees.
Non-Deductible Job Search Expenses
There are some expenses related to the job search that you can't deduct from your taxes. These are the following:
- First Job
- Substantial Break between Jobs
- Reimbursed Costs
Sorry, new grads: if this is the first time you're looking for a job, you can't deduct your expenses.
Was there a significant amount of time between when your last job ended and when you started looking for a new one? If so, you can't deduct the expenses. Contact the IRS to find out what qualifies as a "substantial break."
Have any of your expenses been reimbursed? If so, they are not deductible.
For more information on how the job search can affect your taxes, see IRS Publication 529:Miscellaneous Deductions.
You can Buy A Car At the Dealership Like A Pro. Here's How You Can Be Prepared.
So you're finally ready to trade in your current car for a new one! Congratulations on such an important step. If you've never bought a new car before, you may know nothing about the process. To begin with, there are a number of things you should do to get ready to buy the car before you ever step on the dealership lot.
Can you Use Money That Is Mistakenly Deposited Into Your Account?
Have you ever noticed that your bank account somehow had 'extra' money in it even though you knew for a fact it wasn't yours? If so, you are not alone. It happens more often than you would think. All it takes is for a bank teller to type in one wrong number at the time a deposit is being made.
Low Interest Automotive Financing Might Not Be Best Deal After All
Great rates do exist. But even if you are offered a low interest car loan, you can probably save more money by accepting a slightly higher rate and using rebates or other incentives or by getting your own financing and taking the rebates and incentives.
Following These Tips Can Help You Save Your Hard-Earned Money at Tax Time
Many people feel like they just can't get ahead when it comes to money. What you may not know is that saving during tax season can start you on the path to financial security. We urge you to take advantage of tax season to prepare for unexpected emergencies or plan for the future. Here are some tips to help get started.