Job Search Tip 4 - Save your receipts

Your job search expenses may be tax deductable when you file your income taxes.  The key to getting these deductions is saving your receipts.  You'll be surprised how much everything adds up.  I have a folder on the refridge, where I deposit notes about my job search, and any receipts that I can get credit for when it comes to tax time. 

In my research I learned that generally, you can make deductions if you are looking for a job in the same line of work in which you were employed.  The only catch is that you can only deduct expenses that exceed 2% of your income. Your income would include: money you were making before you were laid off, your severance and vacation pay, and work you have done as an independent contractor (All of this is taxable.)

If you are making itemized deductions, here are some of the items you might be able to deduct:

• Outplacement services you paid for
• Local and Long Distance Phone calls you made
• Cost of having your resume done by  a professional
• Copying/Printing your resume
• Mailing your resume out
• Traveling expenses for going to and from the interview.
• Internet Search
• Newspaper Subscriptions
• Schooling
• Memberships in Professional Associations

If your medical expenses exceed 7.5% of your adjusted gross income, you may be able to deduct some of these expenses as well. 

Please refer to the IRS and your tax advisor for the final word on what can be deducted. 

The IRS lists the deductable expenses, at Publication 529.
 http://www.irs.gov/publications/p529/ar02.html#en_US_publink100026911

Here are some other sources of information on this topic:
http://businessmajors.about.com/od/jobsearch/qt/tax_tips_expens.htm
http://www.prlog.org/10191814-unemployment-is-taxing-enough-get-yourself-tax-deduction.html
http://www.turbotax.com/


Any tips or articles you can share?  Love to hear them.