Tax Tip: Looking for a Job? Time to Add Up the Deductions

Business

0  Updated at 3:54 am, April 2nd, 2013 By: ABC Digital
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Creatas Images/Thinkstock(NEW YORK) — Millions of Americans are actively looking for a job, and a lot of expenses are tax deductible.

“Stamps, postage, stationary, if you ultimately moved to get a new job — many of those moving expenses can also be written off,” says Bob Meighan with tax prep firm TurboTax.

But like any deduction, the key is keeping good records.

“You do want to keep track of your expenses.  Some people are interviewing out of town; this is obviously a very important deduction,” tax accountant Janice Hayman says, adding that you don’t even have to land the job to take the deduction.

“That is, of course, where this starts adding up.  It would be perhaps some business meetings trying to cultivate new work,” Hayman explains.

There’s a couple of caveats, though.  If you’re totally changing careers, Uncle Sam will not allow you to take the deduction.  And you cannot deduct employment search expenses if you’re in the job market for the first time.

Copyright 2013 ABC News Radio



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