Ken: Well the unemployment figures continue Dory, I don’t want to go with the numbers, I don’t want date this video because it’s probably going to go for a long time.
Daria: I'm afraid it is.
Ken: It sort of like making lemonade from lemons not exactly but if unemployed or I have my unemployment in my early future let’s take a minute to talk about some of the tax deductions for finding a new job. Millions of people are in that position, I hate to say a few more will be too. Let’s save some money.
Daria: Because it does cost money to go out and try and find another job or to try and change jobs because you can see the handwriting on the wall maybe in your own particular company right now.
Ken: I want to make one point there before I forget because I always forget; we’re talking about deductions when you're looking for job in the same area of work.
Daria: Absolutely.
Ken: Not geographical but in the same kind of job even if you don’t get it.
Daria: You can't be a an accountant today and want to become a tight rope walker and try and deduct those because it just doesn’t work. It got to be in the same area of expertise.
Ken: And a new job upon graduation, I can't believe it, but generally cannot qualify and in the IRS world we’re giving you the bad news, a substantial break between your last job and the new search. I don’t think it defines what it is but a substantial break. Those are the situations where these don’t work generally. Give me some good ones.
Daria: All right, here are the items that you may be able to deduct. Number one, employment agency fees, although if you're using that kind of an agency you're probably using an agency that isn’t going to do you much good because the good ones take the money from the employer not the with the employee.
Ken: Resume preparation, very important to do it right. Travel related to airfare, mileage and for 2009 the mileage is 55 cents per mile by the IRS. It goes up inbound depending on the price of gas and stuff, but 55 cents per mile. How about local and long distance calls?
Daria: Yes keep log of all of those and mark them, highlight them on your phone bill because those are also deductions that you can use. Medical expense while unemployed but that’s deductible whether you're employed or unemployed, but if you're unemployed then maybe if you had some major medical problem you will get above that 7.5% floor of adjusted income.
Ken: If your income is really, really low it’s not her to get over 7.5%. Keep in mind that other than medical there are other expenses, we’re talking about job search are only deductible if they exceed 2% of your adjusted gross income. Now as you're not working and your adjusted gross income is going to be down then it’s going to be easy to reach it. So 2% it’s a miscellaneous expenses, 2% of your adjusted gross income.
Daria: And here’s where you can get more information publication number from the IRS 529 that’s IRS publication 529 will give you all the details.
Ken: We hope you don’t need those video but if you do your site can save some money.
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