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Tax write offs for job seekers

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    David Selig on how you may be entitled to deduct costs associated with your job search

  • Duration 7:17
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We're gonna go to up completely sixteen years but -- big issue that many people face obviously and one of them.

Biggest issues for the election is going to be how to get a job getting jobs decreasing unemployment rate.

So there's some tax write off that people should consider when they are looking for a job so to talk about this we're joined by David -- Federal tax practitioner and founder of truth that's -- dot com thank you for coming on thanks for having me a pace of the job hunt could be a tax write off tell us that.

Absolutely I would strenuously advise -- of your viewing audience is presently looking for a job.

Acquaint themselves with IRS publication 529.

Men it really outlines what you can write off for instance.

Job search expenses.

Any fees incurred with perhaps -- headhunter.

-- I think they're calling themselves something different now how much of those fees for and I don't really depend yeah travel for instance let's say you live in New York.

-- you are going for a job interview and -- Akron Ohio compact those expenses by all means are deductible might you have to be very careful that you keep good records.

Maintain a -- a and don't try to double dip.

In other words don't bring your family along responsibly to look for this job and then squeeze in a vacation and try to -- the whole thing off.

Great way to get audited right.

-- what if you happen to get a lot of interviews and and they're not working out for you or they argue not accepting -- -- keep writing off all these job interviews all over the country.

Absolutely as long as you're not perpetrating any sort of fraud and again at the risk of being redundant.

Maintain good records -- -- all of our clients.

Keep a diary -- also something else I should bring out there is a thread that's woven through -- Rules and that is you have to be looking for a job in your own occupation.

-- -- Obama doctor I can't try to become a lawyer and then write off.

Rai utilizes this high there's no nexus -- that because access -- within the same profession sure.

-- you know you could even.

In some cases continuing education to events around field if the designation -- certificate would help you.

Perhaps make more sales will be -- competence or in your field if let's say somebody were to take a speaking colossal -- anything had contact -- absolutely that's a legitimate business expense and what kind of formed -- -- that.

Well really depends on the facts and circumstances -- -- be very careful that I don't give.

And blanket bad advice saying that I wanted to -- viewers or raise the ceiling defense.

-- -- so we don't want that man let's say good luck everybody looking for a job and.

And maintain your records and yeah -- -- what.

That the current employer -- -- prospective employer compensate you for some of those expenses whether it's a class or the train down to the interview.

On the would -- government know about that.

-- you've got to be careful that you don't get caught double dipping.

-- the best pure if you well if you write it off and then you're later compensated -- to treat that compensation is saying come on your 1040.

Because that can be a Gateway into a closer examination what do they say -- you -- be a little pregnant.

You're loving the numbers on this you may be doing so on the other.

Yeah okay well we have content DSL as are writing in on -- chat he goes all those deductions or loopholes to somebody some where else we think about that the non know.

I think that's nonsense.

The fact of the matter is I don't believe there are too many loopholes at all in the IRC.

They were created for a specific purpose in this case the economy is.

Hurting -- -- and individuals who have the wherewithal to go out and actively pound that pavement.

Well they should be able to write off against their income and expenses they incurred -- I don't think that's a little less job search last from multiple years and we know the long term unemployment problem is that you -- people artwork to three.

Plus yes that's an -- -- question because the provision in the IRC says that you cannot write off after a protracted period of time but if you look at that's not actively looking.

That's a guy who just throws his hands up.

Sits home for a year watching television -- very little and then says maybe I'll go out and find the job.

If you're out there hitting those bricks sending out those -- making those calls network -- whole nine yards right by all means you're entitled to the write off and you should take it.

And hopefully you're not doing that promotes plagiarism has many people -- out of -- -- sixty minutes last night the long term unemployment situation in this country is really.

Trouble and college educated successful people knocking on the get back and.

-- tell you on my firm we do a lot of for a presentation of small businesses and such.

I'm one of the biggest problems we're finding is when -- say a restaurants.

Or a greeting card store.

Falls behind deny that their payrolls sales tax men -- their sales tax obligations.

They really have a difficult time extricating themselves and frequently.

The governmental say your payroll.

You're gonna have to get rid of these people you're stacking new liability is.

It's this coming year my colleague Brad -- and and I we've designed this new paradigm for helping our clients can.

We anticipate we're going to save approximately 2500.

Dropped so there's other ways to do it that's not sacked daily variety can post Saddam will that's really interesting says.

To find out about it something that should be noted it's huge because just the tax revenues that by keeping these people employed.

Far -- away exceeds.

You know the the immediate benefit that the government might derive from additionally.

You have to think if let's -- you have.

2500.

People.

Average salary is 40000 dollars and that's a hundred million dollars that -- the immediate economy and we don't want that.

So it's really an exciting program -- we'll keep you posted.

-- the elementary -- curve -- -- someone that I do expect reports for work -- On -- and someone has sent me several years ago back in 2000 -- when we were shipped -- from Republican to Democrat.

This it'll be careful because you can't get as many expenses in when there's a Democrat in office is Stephen Trent.

-- -- I don't know about roller I think that sounds like one of these urban myths but is there anything you look at differently when we switch administration's.

Bond.

No we concentrate largely on compliance and representation all of our clients are already in trouble with the state -- the -- Yeah so irrespective of who's in the top slot the you know the game it's -- -- You have a big fan mark Goldman says that he loves when we have this guy on earth and that guy would be you didn't see Elaine thank you mr.

on the -- once or twice.

-- -- -- cited no but -- head of all things being Smart we like.

Billy compliments -- bring up your website now open up for more information on any of this go to -- tax help dot com.

And you also have an article on foxbusiness.com.

Well.

An article touching on all of these points imperfect business dot com.

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