It’s Tax Time—What Can You Deduct as a Laid-Off Jobseeker?

The last thing we all want to deal with is taxes unless we expect a refund. Chances are that as a laid off worker, you will be eligible for a refund this year, if you played your cards right.

Hopefully, you’ve kept records and receipts since your layoff, because if you have been looking for a job in the same profession, many of your job search costs are deductible on your federal tax return. Also, if you’ve been collecting unemployment, hopefully you’ve had taxes deducted.

The IRS allows a few job search-related itemized deductions, including:

• Employment agency or headhunter fees (if you pay them yourself and they are not later reimbursed).
• Resume preparation, printing and postage (and faxing).
• Long distance or cell phone charges related to your job search.
• Career coaching fees, and travel or phone costs related to their services.
• Local travel expenses. Mileage by car is reimbursed at 55 cents per mile, but you need to keep a log of your car travel, including local trips for job search purposes, including parking. If you travel by public transportation, be sure to keep track of your fares as well.
• Unreimbursed out of town travel expenses for interviews, including meals, transportation (air, train, taxi, bus), lodging, parking and tolls.

If you didn’t do it in 2009, I recommend keeping an inexpensive travel log with you all the time this year and setting up a spreadsheet to record your travel and other expenses. That way when tax time comes around again, you’ll be ready.

 

This CNNMoney article is from last year, but it has many excellent tips for unemployed taxpayers that remain relevant.