I thought this might be some useful information. Please feel free to pass on to whoever you know that might be able to use these tax deductions. Hope this helps even a little bit. Tammy
With unemployment nearing double digits, you may have friends or family members who are out of work—or you may be facing a layoff yourself. If so, you may be surprised to learn that unemployment benefits are treated just like regular wages and are subject to income tax.
If you have any questions please contact your tax preparer.
A temporary tax law rule provides some relief for individuals receiving unemployment benefits in 2009. The American Recovery and Reinvestment Act created special income exclusion for the first $2,400 of unemployment benefits received by an individual in 2009. However, any benefits over and above that amount will be taxed.
On the plus side, there may be tax write-offs available to unemployed individuals that can reduce the tax bite. Depending on an individual’s personal tax situation, deductible amounts may include:
1 Job-search expenses, including resume costs, employment agency fees, job counseling, travel costs, and the like.
2 Moving expenses in connection with a new job.
3 Education expenses for brush-up courses or new training.
The key here is to keep careful track of expenses. Make sure to keep receipts for all out-of-pocket costs
Tags: lower taxes
