| As April 15 approaches, tax returns can be one | | | | checks is counted as income and so is taxable, |
| difficult time for people with checkered work | | | | according to Joseph Perry, the partner in charge |
| records and little available cash. They still have a | | | | of Marcum & Kliegman's tax department. |
| date with Uncle Sam even if they were | | | | What about jobs that required relocation? |
| unemployed in 2008. | | | | If your new job requires relocating, any moving |
| A recent report showed that 2008 was a bad | | | | expenses not covered by your new employer is |
| year for 2.6 million Americans who lost their jobs, | | | | tax deductible. The new job location, however, |
| the highest job-loss count in over six decades. | | | | has to be 50 miles further than your old home |
| "More people than ever before may be | | | | from your former job, according to Tom |
| experiencing, for the first time, unemployment | | | | Ochsenschlager, vice president of taxation for the |
| and the tax implications related to that," revealed | | | | American Institute of Certified Public Accountants. |
| Mark Steber, vice president of tax resources at | | | | This deters you from deducting expenses from a |
| Jackson Hewitt. | | | | move within the same area. |
| Here are some guides that may help those | | | | What if it cost me a lot to look for a job? |
| unemployed taxpayers in 2008. | | | | Job seekers last year may get a great deal of |
| Will I still have to pay tax even if I was | | | | tax deductions. A lot of the expenses accrued |
| unemployed in 2008? | | | | during a job search is tax deductible which can |
| If you received a W2 from your employer and | | | | add up to some terrific savings. |
| earned at least $8,950, or made $400 if | | | | Taxpayers may bring down the amount of |
| self-employed, the IRS requires you to file your | | | | payable tax by declaring the following deductible |
| tax return. If you are expecting a tax refund, | | | | items.o Expenses incurred during the creation, |
| then you must file even if you haven't worked at | | | | printing and mailing of your resume. Long distance |
| all. | | | | calls or cell phone charges used with your job |
| Am I required to pay tax on my unemployment | | | | hunt are also deductible.o Transport expenses |
| checks? | | | | such as bus, train, taxi or plane enroute to a job |
| Yes. Unemployment payments are subject to | | | | interview. Also included is applies to fuel cost |
| taxation on most federal and state tax returns. | | | | when you drive from home to interviews or even |
| When filing for unemployment, you can select | | | | to an unemployment office. Parking and toll fees, |
| whether you prefer state or federal income | | | | meals, and lodging expenses are deductible if the |
| taxes deducted automatically from you | | | | interview is out of town. |
| unemployment benefits. Should you decide to | | | | Unfortunately, you cannot deduct the cost of a |
| withhold, a 10% federal tax withholding rate will | | | | new suit, briefcase or new shoes that you have |
| apply while state rate varies. Because many | | | | used for the interview. |
| financially-burdened taxpayers choose not to | | | | It is important that taxpayers keep all their |
| withhold, they may have to settle this April. | | | | receipts to substantiate their expenses when |
| What if I used some of my 401(k) money? | | | | requesting for tax deductions. It is advised to |
| Taking money out of your 401(k) or retirement | | | | consult a professional tax preparer for expert |
| account as an add-on to your unemployment | | | | help. |