5 Tax Deduction Tips for Job Seekers

5 Tax Deduction Tips for Job Seekers5 Tax Deduction Tips for Job Seekers5 Tax Deduction Tips for Job SeekersShow of hands Whos looking forward to doing their income taxes?For those of you who didnt run away screaming, here are five rules to follow when youre deducting job search expenses on your 2010 federal tax return(1)You must itemize your deductions, using Schedule A and filing Form 1040.That means your expenses must be lumped in with the other deductions that are itemized, such as interest on the mortgage of your primary home, property taxes, state and local income or sales taxes, and charitable deductions. Also, the total of your Schedule A deductions must exceed a certain amount depending on your filing status. For instance, if your filing status is single or married filing separately, that amount is $5,700. If youre married filing jointly or a qualified widower, its $11,400. Head of household? $8,400.(2)You can only deduct expenses that exceed 2% of your adjusted gross income .But if you were employed at any time during 2010 and had on-the-job expenses that were not reimbursed by your employer, they can be added to your job search expenses.Example Your adjusted gross income for 2010 was $60,000. Two percent of that is $1,200. If your job search expenses amounted to $1,000 and your unreimbursed work expenses were $500, you have $1,500 in expenses. Subtract the $1,200 from that, and you can deduct $300. Use Form 2106 and report that amount on Line 21 of Schedule A.(3)You can only deduct expenses if youre looking for a job similar to the one you have.In other words, if youre a firefighter but want a job as a bartender, youre out of luck.(4)You cant take a deduction if youre looking for a job for the first time.That would apply, for example, to a new graduate seeking his or her first entry-level job. You also cant take a deduction if there was a substantial break between the ending of your last job and the time you start to look for a new one. Theres no clea r definition of substantial break, but roughly translated If youre unemployed, dont travel the world for three months before you start looking for a new job. Start looking right away(5)You cant deduct everything.You can deduct expenses for the followingMembership fees for your account. (You can contacts Customer Support team via chat, phone or email for a detailed statement of what you spent with us last year.)Resume preparation (e.g., printing, copying, having it rewritten by a professional)Mailing expensesParking fees, tolls, public transit fares, and mileage (50 cents a mile) to and from bewerbungsinterviews and networking meetingsLodging if, for example, you had to stay overnight before a scheduled job interview out of your local areaPhone and fax charges (document how many minutes you spent talking with prospective employers and other contacts who led you to job possibilities).But you cannot deduct meals and entertainment expenses. Bummer, I know, but look at it this way Youd b e eating no matter what youd be doing, so this isnt an out of the ordinary expense. And entertainment fees are optional, no matter how you look at it.Disclaimer Im not a tax specialist, but this information comes from the IRS web site and personal experience. If you want more information, read the IRS publication Six Tax Benefits for Job Seekers, and the more comprehensive IRS Publication 529.Here are links to other IRS forms and publications that can help youForm 2106 Form 2106 instructions Schedule A What other tax tips do you have for job seekers? Tell us below in a comment.