Tax Relief Tips for Job Seekers
Tax relief can come in many forms for taxpayers and deductions are a great way to take some tax burden off of your shoulders. But what about those of us who are on the job hunt? What are the rules surrounding deductions while looking for work? Laura Saunders of the Wall Street Journal explores the best ways to get some tax relief while on the job search in her article Write Off Your Job Hunt!
Check out some of our favorite points from the article below to learn how to make the most of your situation:
- The miscellaneous deduction: A write off go-to for job seekers that includes travel, entertainment, business cards and other costs related to job the job search. The drawback is the limit of the deductions; they can also exceed up to 2% of the taxpayers adjusted gross income.
- Sole-proprietorship: Another means for deductions for job seekers is to set up a Schedule C sole-proprietorship and begin to look for side work as a consultant or independent contractor. Now deductions are no longer limited as long as they are aligned with the income reported on your Schedule C. However, it must be noted that the IRS is happy as long as you are making a profit and you must show a profit in at least three years out of five.
- Medical expenses: Medical expenses are deductible to those who itemize (Hello, sole-proprietors) but only up to 7.5% of the taxpayers adjust gross income
- Home office: The home office is a great deduction, but the rules are stiff: the home office must be used regularly and exclusively for business!
- School: American Opportunity Tax Credit is provided to those working on their first time degree. So if you are going back to school this credit can be a big help and is granted regardless of income of the taxpayer.
To see other great tax relief tips for job seekers check out Saunders’ full article Write Off Your Job Hunt!
Staying educated on tax news and tips is a great way to stay ahead of tax problems before they begin. For more information on tax help visit our website at www.taxresolution.com.
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