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~ Job Q&A : Job Search Tax Deductions
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From: Edenh  (Original Message)Sent: 8/14/2006 11:36 PM
Article from CareerJournal.com
 
Tax Breaks May Come
With a New Job Change


By Marshall Loeb

From MarketWatch

Frequent job switching is fast becoming the norm in today's economy. Young people can expect to change employers several times during their careers and sometimes move clear across the country, or even abroad, to do it. That can get expensive so be sure you claim the maximum tax deductions if you're moving for a new job.

There can be plenty of them -- including the expense of finding that new job as long as you remain in the same occupation. Employment-agency fees, postage and supplies for sending out your resume, phone calls and travel for interviews are all deductible. You can itemize them on Schedule A of IRS form 1040 but only if your miscellaneous tax deductions exceed 2% of your adjusted gross income (if you're self-employed there is no minimum).

But finding the job can be cheap compared with the costs of moving for it.

You may well have to sell and buy a house or break an apartment lease. You'll also have to pack, ship, insure and store all your stuff. Luckily, if you meet a few conditions, many of those expenses are deductible directly from your AGI, meaning you don't even have to itemize.

You can deduct moving expenses as long as you are moving to take a job (it can't be your first job out of school) and the distance to your new home minus your current commute to work is more than 50 miles. For example, if you move 60 miles away but your old commute to work was 20 miles, you don't qualify.

You must also be employed for at least 39 weeks in the year following your move (78 weeks in the following two years for the self-employed). It's all right if you switch jobs or move again as long as you are employed for the minimum.

You can deduct the cost of packing and shipping your belongings, lodging and travel for all family members on the way to your new home (excluding meals), parking, tolls, storage and insurance for 30 days after the move and even the cost of disconnecting and reconnecting your household utilities.

You cannot, however, deduct any expenses associated with selling your home, breaking a lease or finding temporary housing.

To claim the moving deduction, fill out IRS form 3903 and then enter the amount on your 1040.

See the IRS Web site for more info.



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