Tax Deductible Resumes..Getting Multiple Benefits From A Needed Job Seeking Tool!

Aug 27th, 2005 | By Bill | Category: Employment News



Tax Deductible Resumes..Getting Multiple Benefits From A Needed Job Seeking Tool!

For those of you who are still on the fence about getting a resume professionally crafted, here is some information that will talk you down to hit the ground running for the nearest resume consultant.

According to IRS Publication 529 (which deals with deductibility of job search expenses) a job seeker can deduct certain expenses incurred in looking for a new job in his or her present occupation whether or not she or he even gets a new job. These expenses can be listed as miscellaneous itemized deductions on Schedule A (Form 1040).

People seeking employment are allowed to claim the amount of expenses that is more that 2% of their adjusted gross income. A full listing of deductions to this limit can be found on Publication 529 from the IRS.

There are limitations and restrictions. Job seekers cannot deduct expenses if:

1. He/she is looking for a job in a new occupation or field.
2. There was a substantial break between the ending of their last job and looking for a new one.
3. He/she is looking for a job for the first time.

Items that are covered in the specific expense information include:

Resume Services: Deductions here include the amount spent for having a resume prepared as well as printing and mailing copies of the resume to hiring managers if a job seeker is seeking employment in his or her present occupation.

Along with services provided by resume consultants, other fees and expenses related to job searches may be covered and include the following:

Employment And Outplacement Agency Fees: If expenses are incurred as a result of using an agency to look for work in a present field, these fees can be deductible. BUT, if an employer reimburses an employee for these fees, the fees must include the amount received as part of the reported gross income (up to the amount of a persons tax benefit).

Travel and Transportation Expenses: Travel expenses (including mileage, airfare, hotel and meals) in a specific area can be deducted if a trip is primarily to seek employment within your field and occupation. If mixing business and pleasure, take into account the amount of time spent on personal activity versus actual time seeking employment to determine if the trip can be deemed a working vacation.

Keep track of mileage while looking for work within the same occupation. A person can choose to use the standard mileage rate to determine car expenses. As this rate changes every year, take a look at IRS Publication 463 for more information on travel and car expenses.

As always, please consult with a tax preparation professional to be sure of any deductions taken. For more information regarding the tax deductibility of resume services, please visit www.irs.gov.

Similar Posts:

Tags: