Looking for a Job? The IRS May Owe You Money

The economy recently saw some good news on the job front: A recent jobs report paints a far sunnier picture than we’ve seen in years and led to a stock market rally. Still, the Christian Science Monitor is reporting that as many as 15 percent of Americans are still looking for work.

Even many people who currently have jobs spent some time during 2011 looking for one. If you spent 2011 looking for a job, there’s a good chance you qualify for a number of tax deductions for job seekers.

IRS Pub 529 Guidelines

The Internal Revenue Service provides some basic guidelines when it comes to tax deductions for job seekers. You should look at these guidelines before you attempt to claim any deductions related to a job search:

• Tax deductions only apply to looking for a new job in your current profession. You cannot use the tax deductions to look for a job in a different profession. Further, first-time job seekers cannot use any of the deductions.
• If you get a job through a placement agency, you may deduct the associated fees. However, if you are reimbursed by your employer for the cost of a placement agency, you must report this as regular income.
•  The IRS does not allow deductions after a “substantial break” between your last job and your current job. The IRS does not say specifically what constitutes a “substantial break,” however.
• Only amounts over 2 percent of you adjusted gross income are deductible.

Job Search Tax Deduction Options

There are a number of things you can begin adding up to reach the required 2 percent of your adjusted gross income. Income tax deductions are allowed for the following on your itemized deductions worksheet:

• Resume and Application Costs: Whether it’s printing out your resume, sending it through the mail or buying special paper to print the resume on, all of these costs are deductible.
• Travel: You can deduct a number of costs associated with travel. However, the travel must be directly related to looking for a job. This includes the mileage you put on your car during your job search as well as taking a flight and booking a hotel to look for work in another city.
• Babysitting: Do you need someone to look after your kids while you’re out job hunting? Guess what? Your babysitting fees qualify as deductions, provided that you are legitimately hiring a babysitter to look after the little ones while you look for your next job.
• Moving: If your job search lands you a gig on the other side of the country, you’re in luck: You can deduct all costs associated with your move, from packing tape to shipping. There are some stipulations, including that you must move more than 50 miles from where you currently live to qualify.
• Training and Networking: Looking for a new job can often include job training and heading off to seminars to keep your skills fresh as well as your foot in the networking pond. The cost of such events is deductible, provided that it is legitimately related to your job search.
• Phone Calls: You can deduct the cost of phone calls made from a land line or a mobile account used only for your job search. You cannot deduct the cost of phone calls made from most mobile accounts, as you buy your minutes in bulk.

Income Tax Deduction

When filing your 2011 taxes (or any other year) you should take all legally available deductions. Don’t try and play “audit roulette,” but don’t be afraid to to take every deduction you’re allowed–otherwise. you’re just sending gifts to the IRS.

Fall Fun!

Trick or treat!

It’s that time of year again. The time when all those cute neighborhood kids (including your own) transform themselves into an unrecognizable motley crew of thieves, witches, and princesses. The time of year when your doorbell rings constantly as one gang after another fill their bags with the treats that are a kid’s dream and a dentist’s nightmare.

Yes, it’s Halloween. It’s the one day of the year just made for kids and the kids at heart. However, for your average American adult, Halloween can be a hassle too. Before the fun begins, there are endless weeks of constant whining for the best costume on the block. Harried parents are dragged from store to store in search of that perfect outfit, trying to strike some balance between the child’s enthusiasm and their holiday budget. For too many kids and parents, Halloween turns into a competition. Too much time, money and nerves are spent on what should be a fun experience.
But this year you don’t have to do that. The point of a Halloween costume is to be fun and original – and original and store-bought are not synonymous. Is your goal to make your child stand out from others on the block? Well, your homemade costume is bound to be a one-of-a-kind collector’s item, specially designed just for one child. Don’t be scared if you’re not a professional tailor. Most people aren’t. You don’t even have to know how to sew. Just visit your closet and start thinking out-of-the-box. Here are a few ideas to get you started.

• The sheet turned into ghost idea never fails. But don’t leave it with slits for the eyes and mouth. Take a few permanent markers and give the ghost some flair. Makeup will bring out the ghost’s haunted eyes and red lipstick can look bloody.

• All you need for a Pipi Longstocking costume are mismatched socks, shoes, clothing and a hanger or pipe cleaner to make Pipi’s braids stand out.

• Draft your kitchen broom as Harry Potter’s Firebolt. Add a black cape, witches hat, glasses, and a zigzag scar to complete the picture. An old cauldron can be used for trick or treating.

• What’s keeping your leotards from becoming animals? Just grab a headband to add assorted ears of your choice and pompoms make super, fluffy tails. Add a dash of face paint and your home zoo is complete.

• Dress your little girl in a leotard or light frilly dress and tights and see if you recognize that famous ballet dancer.

• A piece of cardboard and some paint transform into butterfly/ladybug wings, ready to fly.

• Is a dark suit or trench coat languishing in your closet? Add a badge and you can enter anywhere as the FBI.

• If you have old boxes sitting in your garage, cut holes for your head and arms, and decorate the box to become a jack in the box or a popcorn snacks.

A quick search on the Internet will yield many fun, creative, easy and inexpensive ideas for Halloween costumes too.  Try these DIY costumes.

Just remember, have fun, be safe, and let your children know the good candy has to be “checked out” by you first 🙂