Monday, April 18, 2011

Tax Breaks for the Unemployed

If you are unemployed, taxes may be the last thing on your mind, however, you are actually entitled to a handful of additional tax breaks. Read on, the unemployed need all the money help they can get.

CNN reports:

    "This is your money that you're entitled to, and if you're unemployed it's really in your interest to get that money back this year," said Bob Meighan, vice president at TurboTax. "Refunds are averaging around $3,000, which is a pretty good chunk of money, especially if you're unemployed -- but time is running out, so get your records together and get started."

    Job seekers: If you lost your job and were seeking a new one last year, you can deduct many of the costs associated with your hunt.

    This includes headhunter or career coach fees, the cost of printing, photocopying or creating resumes, and even fees for joining job search sites. You can also deduct phone and fax expenses, as well as the cost of traveling to and from interviews -- including airplane tickets, bus rides and gas money.

    As a job seeker, you can even deduct the cost of taking continuing education classes to maintain the skills used in your previous line of work.

    And the money spent on job hunting doesn't have to result in employment. To claim the deductions, you simply need to itemize them on your return. If you do end up scoring a job and need to relocate at least 50 miles away from your current home, you can also deduct the cost of moving.

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