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Job hunters who have been unemployed for months and are watching their nest egg fly out the window might really be able to catch a break in April. Although it doesn't compensate for constant work, unemployed job seekers can take an entire slew of tax write offs unavailable to the steadily-employed. Article resource: Tax deductions for the unemployed



Do not forget job hunt expenditures



If you were unemployed last year and have to pay some taxes, you can get away with a grace period without penalties. The Internal Revenue Service is offering this to unemployed individuals. If you looked for work during that time, you can deduct it from your taxes as long as it exceeds 2 percent of the adjusted gross income. This can consist of anything you used in the job search such as phone calls, printing things, and even travel expenditures if you had to travel.



With no employment



Mark Luscombe, a tax analyst at the firm CCH, said:



“There’s no question most people would rather have a job than have to look for tax breaks for being unemployed. But for those facing an extended period of unemployment, they can benefit from knowing the steps to take to lower their tax bill.”



Keep the IRS away



The tax break is not contingent upon finding work. But, as in all tax dealings, keep all records that pertain to the deduction, and always be scrupulous. Getting too greedy and pushing it too far are red flags that the IRS will use to come after you.



Ideas for the worker



Using a tax preparer is a wise move when you are itemizing your deduction for things like this, according to Massachusetts CPA Gordon Ulen. He also said that you should only deduct stuff that has to do with the job hunt.



[A loan can help get those job hunt tools that the IRS will pay you back for later.]



Can you do it?



To qualify for the deductions, a job-seeker also needs to search for work in their established field. Those looking to switch careers midstream better not plan on a break from the federal tax agent. Those trying to find their first job also do not qualify. Sorry, recent university grads. Also ineligible are those returning to the workforce after a protracted absence, such as to go to school or to raise a child.



Sources



Job Search

Forbes

CNN