April 15th is right around the corner and most folks have already submitted their tax forms or are in the heat of making final preparations. Making enough time for adequate preparation is the key to finding and claiming all allowable tax deductions. The last thing anyone wants is to face the regret of rushing through it all and discovering missed deductions. It’s like taking money right out of a person’s pocket.
It’s so tempting to put filing taxes off for another day, but the wise taxpayer will get those forms completed and filed as soon as possible in order to avoid the mad dash at the April 15th finish line. Rushing to complete tax forms and getting all that paperwork together is when mistakes happen. Think that stress level is high now? Stress will be through the stratosphere if the IRS finds one of those mistakes on a tax return. Proceed carefully and make sure to get all the allowable deductions possible.
Check These Areas for Allowable Deductions
Folks that searched for a new job last year can deduct the expenses incurred while searching for that new job. Printing costs, travel expenses related to the search, and even expenses incurred from networking. These can be used as allowable deductions even if a person is presently employed while conducting a job search.
These job search expenses can be deductible even if a person is not offered a new job. However, there are some expenses that are not allowed, such as looking for a job in a totally new or different profession or if there was a substantial amount of time between the end of the last job and the start date of a new job. Expenses incurred by first-time job seekers are not allowable. Check with a qualified tax professional or CPA for more details.
More Job Search Related Deductions
Moving expenses related to a new job are also allowable deductions. If a person’s position has been changed or the location of that particular position has changed, some of these moving expenses incurred may be allowable deductions. The criteria for what and how much is allowable is largely determined by the distance of the actual move and the amount of time spent on the job. Part-time positions will usually not qualify for this deduction.
Employment fees and outplacement agency fees may also be allowable deductions. When a person finds a new job and the new employer pays for any job search expenses, this amount should be subtracted from any other deductible expenses. Again, it makes sense to check the IRS website, a qualified tax professional, or CPA.
Make Sure it’s the Official IRS Website
Be aware that there is only one official IRS website – http://www.irs.gov/. Don’t be fooled by any other sites claiming to be the official IRS or its representatives. These fake websites will only be a little different from the official IRS website so be cautious. Fraudulent websites will use irs.com, or the suffixes .org or .net. Identifying the correct, official IRS Website is the key to not getting ripped off.
This information is not intended to be a source of legal advice, and no information in this article should be considered or relied upon as legal, tax or financial advice on any specific matter. Never act upon general information on legal, tax or financial matters without seeking legal counsel regarding a particular situation. Check out the IRS website for more information.