Tax Deductions For Unemployed
Many unemployed people have no idea of the tax deductions they are eligible for. So, they might end up paying taxes when they could have put that money to better use. Obviously you will be looking out for a new job if you are unemployed.
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Itemize your job-searching expenses as you are eligible for 2 percent deductions from your income. Make sure that you are searching for a job in the same field. Otherwise, you might not be eligible for a job-search deduction.
You are eligible for a tax deduction for the following:
- Expenses for advertising for a new job.
- Conveyance charges you pay to attend job interviews.
- 50 percent of food expenses you pay when you are out looking for a job.
- Cost for typing out, printing and mailing or faxing resume. Although to cut costs, you can email your resume.
- Long distance calls you have to make to potential employers.
- Newspapers you purchase to search for job ads.
- Registration fees for an employment agency
- If you go for career counseling to improve your chances for a job, fees to be paid for the counseling sessions.
- Employer’s fees, if any.
- Legal fees you pay while negotiating for the job
- Accounting fees while preparing the employment contract.
If you find a job that is more than 50 miles away from home and you have to shift to a new house to take up that job, you can deduct shifting expenses.
Always consult the IRS website to keep yourself updated with tax information.
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