{"id":725,"date":"2012-04-20T17:20:13","date_gmt":"2012-04-20T17:20:13","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=725"},"modified":"2012-05-02T14:18:44","modified_gmt":"2012-05-02T14:18:44","slug":"how-to-write-off-your-job-hunt","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=725","title":{"rendered":"HOW TO WRITE OFF YOUR JOB HUNT"},"content":{"rendered":"<p><a href=\"http:\/\/www.forbes.com\/sites\/kerryhannon\/2012\/03\/05\/how-to-write-off-your-job-hunt\/\"><br \/>\n<\/a><a href=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?ssl=1\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1087\" data-permalink=\"https:\/\/kerryhannon.com\/?attachment_id=1087\" data-orig-file=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?fit=300%2C300&amp;ssl=1\" data-orig-size=\"300,300\" 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=\"forbes\" data-image-description=\"\" data-image-caption=\"\" data-medium-file=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?fit=300%2C300&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?fit=300%2C300&amp;ssl=1\" class=\"alignleft size-thumbnail wp-image-1087\" title=\"forbes\" src=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?resize=150%2C150&#038;ssl=1\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?w=300&amp;ssl=1 300w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a><a href=\"http:\/\/www.forbes.com\/sites\/kerryhannon\/2012\/03\/05\/how-to-write-off-your-job-hunt\/\">Read Published Article<\/a><\/p>\n<p>March Madness means more than basketball. Can you say, tax time? If you spent a chunk of time and money on the job hunting trail last year, you probably have a tidy pile of receipts stashed in an envelope or file to show for it.<\/p>\n<p>Anyone who has put together a natty new resume on high-quality paper, mailed it out the old-fashioned way, bought new business cards, traveled back and forth to job interviews, or attended a networking event \u00a0is painfully aware of the price tag.\u00a0The simple nuts and bolts of marketing yourself can be pricey. Believe me, those $10 parking garage tickets do add up to a sizeable sum.<\/p>\n<p><strong>You\u2019ll be grateful for rigorous record-keeping.<\/strong>\u00a0I recommend keeping a journal with notations of what you did each day toward your job-hunt and what money you spent even if you don\u2019t have a paper receipt.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<aside data-position=\"4\"><!--more-->Here\u2019s why. The Internal Revenue Service offers some relief on your income taxes to offset upfront job-hunting expenditure if you itemize your deductions. The IRS categorizes these as miscellaneous expenses.<\/aside>\n<p>&nbsp;<\/p>\n<p>Itemized deductions, which typically include mortgage interest, real estate taxes, certain medical bills, and charitable deductions, must exceed $5,700 for individuals or $11,400 for married couples. Guidelines are laid out in IRS\u00a0<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/p529.pdf\">Publication 529<\/a>.<\/p>\n<p><strong>The \u201cmiscellaneous expenses\u201d rules can be baffling.\u00a0<\/strong>The basic one is that you can claim the amount of expenses that is more than 2% of your adjusted gross income, so be sure to save all your receipts from the reams of printer paper used to spit out your resume to train tickets to parking lot chits and keep track of your car mileage as you drive to and from appointments.<\/p>\n<p><strong>Some important caveats<\/strong>. If you fall under the alternative minimum tax, you won\u2019t have any write-offs.\u00a0Then too, these deductions might not help you much if your spouse is pulling in a healthy income, or you have a substantial severance payout. If your AGI is $100,000, for instance, your miscellaneous deductions must exceed $2,000; if they add up to $2,200, you can deduct $200.\u00a0See\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>These tax deductions apply to job searching in your\u00a0<em>current\u00a0<\/em>profession<\/strong>. If you\u2019re switching careers, they\u2019re off-limits. And first-time job seekers are shut out of any of the deductions.\u00a0Moreover, the IRS does not permit deductions after a \u201csubstantial break\u201d between your last job and your current job. It doesn\u2019t detail what it means by a \u201csubstantial break,\u201d however.<\/p>\n<p>Here are the items you can deduct if you meet the above criteria:<\/p>\n<ul>\n<li><strong>Outplacement fees.<\/strong>\u00a0If you land a new job through an outplacement agency\u2019s efforts, you can deduct the fees associated with using their services. Career coaching fees can usually be deducted too.<\/li>\n<li><strong>Resumes<\/strong>. Resume preparation fees, paper, inkjet cartridges and printing costs for your resume and postage to send it on its way are deductible costs.<\/li>\n<li><strong><a href=\"http:\/\/www.forbes.com\/travel\/\">Travel and meals<\/a>.<\/strong>\u00a0You can deduct travel costs that are strictly related to your job hunt. This can include transportation outlay, such as car mileage (reimbursed at \u00a051 cents for the first six months of 2011 and 55.5 cents a mile for all business miles driven from July 1, 2011 through Dec. 31, 2011 ) and airfare, as well as hotel room charges if you\u2019re in another city for an interview.<\/li>\n<li><strong>Internet costs.<\/strong>\u00a0Work-related wi-fi charges, online jobs sites that charge a fee, and networking services like LinkedIn\u2019s fee for an upgraded professional access are deductible.<\/li>\n<li><strong>Childcare.<\/strong>\u00a0Need to hire a babysitter to watch your kids while you\u2019re out on an interview? You can probably deduct his or her wages, but you need to be diligent about your record-keeping. Be forewarned. Some tax pros disagree about this one, so be sure to have your paperwork.<\/li>\n<li><strong>Skill-building.\u00a0<\/strong>If you<strong>\u00a0<\/strong>pay to take seminars, job training courses, or attend networking events, the charge is usually deductible, but you must be able to prove that it\u2019s connected to your job search.<\/li>\n<li><strong>Dues, subscriptions and professional association fees<\/strong>\u00a0can also be deducted.<\/li>\n<li><strong>Moving costs.<\/strong>\u00a0If you accept a job in another state, you can probably write-off all expenses associated with your move, from packing boxes to shipping. Brace yourself\u2013the moving rules are a little wacky.\u00a0Unreimbursed moving expenses may be written off even if you don\u2019t itemize deductions. But the new job typically must be at least 50 miles away from your previous one. You must\u00a0also be employed at your a new job for a certain time period after you move, which differs depending your working for yourself or an employee. For details, see<a href=\"http:\/\/www.irs.gov\/publications\/p521\/index.html\">\u00a0IRS Publication 521.<\/a><\/li>\n<li><strong>What\u2019s not on the allowable deduction list?<\/strong>\u00a0Haircuts, botox treatments and face lifts, new \u201cinterview\u201d clothes, a briefcase, and tuition to learn new skills for a job change. Most unemployed taxpayers don\u2019t qualify to deduct healthcare costs.\u00a0You can write off only those out-of-pocket medical and dental expenses that exceed 7.5% of your adjusted gross income.<\/li>\n<\/ul>\n<p><strong>Flying solo.<\/strong>\u00a0Job-seekers who are freelancing can set up a sole-proprietorship business reported on Schedule C of the tax return. You can deduct a home-office, plus a whole set of job hunting costs, including travel for interviews and r\u00e9sum\u00e9-preparation free of the restrictions that fall under that 2 percent rule. Better yet,<em>\u00a0career changers<\/em>\u00a0can write these costs.<\/p>\n<p>If you set up a Schedule-C business, your health-insurance premiums should be fully deductible. Deductions for your home office, which must be dedicated to work, will encompass a range of your basic business expenses from supplies to a computer, printer and more.\u00a0The IRS does keep track, so you\u2019ll want to push to show a small profit at least three years out of five.<\/p>\n<p>You should also be aware of what the government considers taxable.<\/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. Be sure enough taxes are withheld from these payments by your former employer, or make estimated payments. See IRS Publication 17, Your Federal Income Tax, for more information.<\/p>\n<p><strong>2. Unemployment pay is taxable.<\/strong>\u00a0Go to IRS Publication 525 for help, as well as\u00a0the\u00a0<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/p4128.pdf\">IRS publication, The Tax Impact of a Job Loss.<\/a><\/p>\n<p><strong>Bottom-line:<\/strong>\u00a0When filing your taxes, step up and take all the deductions you are legally allowed to. If you\u2019re on the job hunt now, be obsessive about saving all those receipts. If the IRS says you can write it off, do it. I highly recommend you seek out professional tax help if you are at all unsure. You never know, you might sink a three-pointer. Swish.<\/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=\"HOW TO WRITE OFF YOUR JOB HUNT\";<\/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 March Madness means more than basketball. Can you say, tax time? If you spent a chunk of time and money on the job hunting trail last year, you probably have a tidy pile of receipts stashed in an envelope or file to show for it. Anyone who has put together a natty [&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=\"HOW TO WRITE OFF YOUR JOB HUNT\";<\/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":1087,"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":[20,29,14,6],"tags":[332,21,52,333,335,10,331],"class_list":["post-725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-career-change","category-finances","category-second-acts","category-second-verse-blog-on-forbes-com","tag-boomers","tag-career-change-2","tag-job-hunting","tag-retirement","tag-second-acts","tag-second-careers","tag-second-verse-blog-on-forbes-com"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2012\/05\/forbes1.gif?fit=300%2C300&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p3YFQS-bH","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/725","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=725"}],"version-history":[{"count":3,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/725\/revisions"}],"predecessor-version":[{"id":1120,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/725\/revisions\/1120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/media\/1087"}],"wp:attachment":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}