Tax Breaks for Job Seekers

The Dallas Morning News in an article on page 9A in its April 6, 2010, issue, “People Who Suffered Job, Pay Cuts May Get A Break If They Know How to Claim it” by Susan Tompor, Detroit Free Press, perhaps belatedly, discusses some possible tax saving tips for job seekers.


1. Tax payers can exclude up to $2,400 of unemployment compensation from taxable income.


2. Job seekers may be able to deduct job search expenses unless they are looking for their first job. However, such expenses must be larger than 2 percent of adjusted gross income.


3. Job seekers may qualify for Earned Income Credit with earnings less than set income limits.


Some of above deductions apply only to 2009 income; however, I suggest that you maintain good records of your 2010 job search expenses. Who knows what tax deductions may be enacted by Congress.


Please share your tax savings ideas in this blog.


Thanks! Glyn