{"id":623,"date":"2012-04-10T15:35:15","date_gmt":"2012-04-10T15:35:15","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=623"},"modified":"2012-04-29T21:18:12","modified_gmt":"2012-04-29T21:18:12","slug":"last-minute-tax-tips-for-job-changers","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=623","title":{"rendered":"LAST MINUTE TAX TIPS FOR JOB CHANGERS"},"content":{"rendered":"<p><a href=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"4\" data-permalink=\"https:\/\/kerryhannon.com\/?attachment_id=4\" data-orig-file=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?fit=366%2C102&amp;ssl=1\" data-orig-size=\"366,102\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;}\" data-image-title=\"secondverse-logo\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?fit=300%2C83&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?fit=366%2C102&amp;ssl=1\" class=\"alignleft size-full wp-image-4\" title=\"secondverse-logo\" src=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?resize=366%2C102&#038;ssl=1\" alt=\"\" width=\"366\" height=\"102\" srcset=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?w=366&amp;ssl=1 366w, https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/02\/secondverse-logo.jpg?resize=300%2C83&amp;ssl=1 300w\" sizes=\"auto, (max-width: 366px) 100vw, 366px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/blogs.forbes.com\/kerryhannon\/2011\/03\/06\/last-minute-tax-tips-for-job-changers\/\">Read Published Article<\/a><\/p>\n<p>There\u2019s one for you, nineteen for me.<\/p>\n<p>\u2018Cause I\u2019m the taxman,<\/p>\n<p>Yeah, I\u2019m the taxman.<\/p>\n<p>Taxes are not my bailiwick. They\u2019re complicated and make me a little nervous and irritable. So as I pause to procrastinate and write this post, I confess I\u2019m still pulling my personal 2010 material together for my tax preparer.<!--more--><\/p>\n<p><strong><object width=\"540\" height=\"290\" classid=\"clsid:d27cdb6e-ae6d-11cf-96b8-444553540000\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=6, 0, 40, 0\"><param name=\"src\" value=\"http:\/\/www.youtube.com\/v\/lWAl5V-SiKQ&amp;rel=0&amp;hl=en_US&amp;feature=player_embedded&amp;version=3\" \/><param name=\"allowfullscreen\" value=\"true\" \/><param name=\"allowscriptaccess\" value=\"always\" \/><\/object><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>It struck me though, that this is an area folks in career transition need to be on top of big time, or it will come back to bite you on the tuches.<\/p>\n<p>The truth is when you lose a job, are looking for a new one or changing careers, it\u2019s critical that you pay attention to the tax implications. So here goes, a little bell ringing, if you\u2019re in the midst of preparing your 2010 return\u2026 or keeping track for your 2011 filing for that matter. I highly recommend, of course, you go to the\u00a0<a href=\"http:\/\/www.irs.gov\/\">IRS<\/a>site for in-depth help and depending in your situation, consult a tax professional.<\/p>\n<p>In the meantime, if your work life was in transition last year, here are some tax prep reminders:<\/p>\n<p><strong>1. Severance pay is taxable.<\/strong>\u00a0If you accepted a severance package and benefits when you parted ways with your former employer, or were paid for unused vacation and sick leave, that\u2019s considered taxable income. If you expect these payouts in 2011, be sure enough taxes are withheld from these payments, or make estimated payments. See\u00a0<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/p17.pdf\">IRS Publication 17<\/a>, Your Federal Income Tax, for more information.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>2. Unemployment pay is taxable<\/strong>. Go to\u00a0<a href=\"http:\/\/www.irs.gov\/publications\/p525\/index.html\">IRS Publication 525<\/a>.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>3. Some job-hunting expenses are deductible<\/strong>.<\/p>\n<ul>\n<li>These expenses are usually deductible: resume printing and postage fees, outplacement firm fees and travel expenses.<\/li>\n<li>What\u2019s not on the allowable deduction list?\u00a0Haircuts,\u00a0new \u201cinterview\u201d clothes, tuition to learn new skills for a job change (should be in my opinion),\u00a0healthcare costs if you were unemployed.<\/li>\n<li>The IRS categorizes these as miscellaneous expenses. You can claim the amount of expenses that is more than 2% of your adjusted gross income. You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. See\u00a0<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/p17.pdf\">IRS Publication 17<\/a>, Your Federal Income Tax, for more information.<\/li>\n<\/ul>\n<p><strong>4. Moving costs for a job might be deductible.\u00a0<\/strong>Brace yourself\u2013these are a little screwy. In general, you can deduct your moving expenses if:<\/p>\n<p><strong>You meet the distance test.\u00a0<\/strong>The general rule: the main location of your new position must be at least 50 miles farther from your old home than the main location of your old job. The key: the commute would have to be at least 50 miles farther if you didn\u2019t relocate.<\/p>\n<p><strong>You meet the \u201ctime\u201d tests.\u00a0<\/strong>Pull\u00a0out your calendars. First, your move must be within 1 year from the date you first reported to work at the new location. Next,\u00a0If you\u2019re an employee, you must also work full time for at least 39 weeks during the first 12 months after you arrive in your new job location. You don\u2019t have to work for the same employer for all 39 weeks, or even 39 weeks in a row, but you must work full time within the same general commuting area for all 39 weeks. Got that?<\/p>\n<p>If you\u2019re self-employed, you must also work full time for at least 39 weeks during the first 12 months and for a total of at least 78 weeks during the first 24 months after you move. You don\u2019t have to be self-employed in the same trade or business.<\/p>\n<p>You can deduct your moving expenses on your 2010 tax return even though you have\u00a0<em>not<\/em>\u00a0met the time test by the date your 2010 return is due. You can do this if you expect to meet the 39-week test in 2011 or the 78-week test in 2011 or 2012.<\/p>\n<p>If you don\u2019t deduct your moving expenses on your 2010 return, and you later meet the time test, you can file an amended return for 2010 to take the deduction. See\u00a0<a href=\"http:\/\/www.irs.gov\/publications\/p521\/index.html\">IRS Publication 521<\/a>, Moving Expenses, for more details.<\/p>\n<p>If you haven\u2019t picked up stakes for a new job yet\u2013and are nimble enough to considering moving to a new town\u2013check out these two articles on best places to start a new career:<\/p>\n<p><a href=\"http:\/\/money.usnews.com\/money\/retirement\/articles\/2010\/09\/16\/best-places-to-launch-a-second-career\">http:\/\/money.usnews.com\/money\/retirement\/articles\/2010\/09\/16\/best-places-to-launch-a-second-career<\/a><\/p>\n<p><a href=\"http:\/\/www.thedailybeast.com\/blogs-and-stories\/2010-10-07\/best-places-to-restart-your-career\/\">http:\/\/www.thedailybeast.com\/blogs-and-stories\/2010-10-07\/best-places-to-restart-your-career\/<\/a><\/p>\n<p>Additional tax help can be found in\u00a0the IRS publication,\u00a0<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/p4128.pdf\">The Tax Impact of a Job Loss<\/a>.<\/p>\n<p>So be careful out there. Like the Beatles say:<\/p>\n<p>If you get too cold, \u00a0I\u2019ll tax the heat;<\/p>\n<p>If you take a walk- I\u2019ll tax your feet.<\/p>\n<p>\u2018Cause I\u2019m the taxman,<\/p>\n<p>Yeah, I\u2019m the taxman.<\/p>\n<p><a href=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/kerryhannon\/files\/2011\/02\/image0023.jpg\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" title=\"image002\" src=\"https:\/\/i0.wp.com\/blogs-images.forbes.com\/kerryhannon\/files\/2011\/02\/image0023-150x150.jpg?resize=75%2C75&#038;ssl=1\" alt=\"\" width=\"75\" height=\"75\" \/><\/a>Kerry Hannon is the author of\u00a0<a href=\"http:\/\/www.amazon.com\/gp\/product\/0811871150?ie=UTF8&amp;tag=kerrhann-20&amp;linkCode=as2&amp;camp=1789&amp;creative=9325&amp;creativeASIN=0811871150\">What\u2019s Next? Follow Your Passion and Find Your Dream Job<\/a>, available here\u00a0<a href=\"https:\/\/kerryhannon.com\/\">www.kerryhannon.com<\/a>\u00a0and a contributing editor to\u00a0<a href=\"http:\/\/www.whatsnext.com\/\">WhatsNext.com.<\/a><\/p>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/static.hupso.com\/share\/buttons\/share-small.png?w=640&#038;ssl=1\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"LAST MINUTE TAX TIPS FOR JOB CHANGERS\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"excerpt":{"rendered":"<p>Read Published Article There\u2019s one for you, nineteen for me. \u2018Cause I\u2019m the taxman, Yeah, I\u2019m the taxman. Taxes are not my bailiwick. They\u2019re complicated and make me a little nervous and irritable. So as I pause to procrastinate and write this post, I confess I\u2019m still pulling my personal 2010 material together for my [&hellip;]<\/p>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"LAST MINUTE TAX TIPS FOR JOB CHANGERS\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[31,14,6,18],"tags":[335,10,331],"class_list":["post-623","post","type-post","status-publish","format-standard","hentry","category-saving-for-retirement","category-second-acts","category-second-verse-blog-on-forbes-com","category-secondact-com","tag-second-acts","tag-second-careers","tag-second-verse-blog-on-forbes-com"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p3YFQS-a3","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=623"}],"version-history":[{"count":2,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/623\/revisions"}],"predecessor-version":[{"id":892,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/623\/revisions\/892"}],"wp:attachment":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}