Gearing up to file your tax returns? So are millions of other Americans by seeking out tax preparation services, or the alternative, a tax software. Oddly we go from the cheer of the holidays, landing face first into one of the most stressful times for all of us: tax season.
Before filing your tax returns this year, remember that certain job-search services you received last year are great tax deductions under the right circumstances.
There are a few considerations relative to tax write offs that the internal revenue code has outlined for your consideration. For example, did you look for employment within your career field? Those in a career change seem to be excluded from this write-off. Also, did you a long hiatus from employment? IRS form 529 doesn’t specify exactly what “a substantial break between the ending of your last job and your looking for a new one …” so use your judgement. Lastly, you must not be a first-time jobseeker.
Not too restrictive … for some.
Although there isn’t a cut-off amount, some career experts feel that itemized deductions for job-search services must be considered before using as a tax deduction. For example, a professionally written resume that cost $5,000 will likely raise suspicion with the IRS. Tax deductions need to be “reasonable.”
Here are services you can write off:
- Resume-Writing Services
- Travel/Transportation Expenses (mileage)
- Employment Agency Fees
It’s important to note the IRS Form 529 does not mention tax deductions for:
- Career Coaching
- Interview Training
- Dry Cleaning
For additional information about miscellaneous itemized deductions, visit http://www.irs.gov/pub/irs-pdf/p529.pdf. Locate “Job Search Expenses” on Page 5 of the IRS form.
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