Article: Smart Tax Tips For Job Seekers

April 5, 2009

By Deborah Martin During the months of January to April, lots of great news stories and articles are published on the subject of tax tips. Over the years I have collected some great advice from my father Louis Martin who is an enrolled tax agent, on-line articles and news stories that are worth sharing with my network in career transition. Job searches these days may take longer than expected so if you are wondering whether or not to keep track of the expenses below think again! During my job search in 2008, I spent $1,522 in job hunting related expenses and traveled 2329 miles using my personal car for networking meetings and interviews. So with tax season upon us there are many things related to your job search that you can write-off!

If you have not already filed your 2008 tax return, now is the time to get refunded from last year's job search, or begin preparing for and documenting this year's 2009 job search. Before you start, find a system for tracking expenses that works for you. If you already track expenses through a system like Quick Books or your credit card statements, flag expenses related to your job hunt so at the end of the year you have an easy way to tally these expenses.

The system that worked best for me was to track both my job hunting expenses and car mileage on an excel spreadsheet updated once a month. As a Pharmaceutical Sales Representative, I learned to keep good records of business expenses and mileage from the many years of submitting company expense reports so I applied some of the same concepts to tracking expenses with my job search. For the job hunting expenses, I recorded the date, expense type and amount then filed the receipt in a folder. For mileage, I recorded the date, trip and mileage. If you forget to record the trip mileage from your odometer, mileage is easy to calculate by using the on-line program map quest. Also in January remember to record your car’s start mileage and end mileage in December. If you forgot to record your start mileage in January or end mileage in December check for your car’s odometer reading on one of your car service maintenance invoices completed around that time frame. THE BASICS Most things related to your job search can be written off. Obvious job search expenses include the costs of printing and distributing your resume, as well as resume-writing services. Below is a list of purchases worth tracking during your job search:

• Purchase of a Computer, Printer or Fax Machine • Printer Ink, Resume Paper, Printer Paper • Internet Cost • Printing cost for Personal Networking Business Cards • Copies • Portfolio Folders, Business Card Holder to track networking contacts, Briefcase

and Day Planner

• Phone charges during networking and interview calls • Meeting Dues & Food/ Beverage costs incurred during networking meetings • Annual Professional Networking Association Meeting Dues • Fees from on-line job search tools such as The Ladders, LinkedIn Business

Upgrades and medreps.com • Thank you note cards • Fees for College Transcripts • Postage, UPS & FedEx charges to submit non-reimbursed hard copies of your

application paperwork to employers

MILEAGE/TRAVEL Whether you're looking for work in your own neighborhood, or in another state, don't forget the opportunity to write off travel and mileage expenses. My most recent job search included the summer of 2008 when gas prices were close to $5 a gallon so every job search related mile counted. Below is a list of travel and mileage expenses:

• Mileage going to and from interviews, career counseling sessions, job seeker resource centers and networking meetings

• Parking, Tolls • Plane Tickets, Rental Cars, Taxi • Hotels • Networking and Interviewing meals associated with overnight travel • Service tips • License Fee from your personal car’s DMV vehicle registration

For the many out there who are taking on contract work and part-time jobs to keep themselves working until they find the right position, consider this gem: ...if a person has a temporary or part-time job, the miles are tax deductible up to a year. Regular or permanent job miles cannot be deducted since it is considered commuter miles. RELOCATION If you can make it work, relocating to an area where more jobs are available within your expertise isn't a bad idea. Even though in the current economy many companies are cutting back on their relocation packages, you can still write off any uncovered expenses on your taxes. In addition to the mileage deduction, an employee can also deduct temporary housing and storage costs. GETTING HELP Going through a job search in a tough economy is difficult and draining, so get the help you need and write it off! Career Counseling would fall under the search for new employment and would be eligible as a tax write-off. Career Counselors can assist with a variety of job search related tasks such as career assessment, resume writing, personalized job search assistance, and more. Mental health is also important to your overall well-being as well as your job search, and shouldn't be overlooked. If you feel the need to get some psychological counseling to stay balanced, this can be written off as a medical deduction for anything not covered by your medical insurance (if you're lucky enough to have it!). Also remember to track other out of pocket medical expenses such as prescriptions, medical & dental insurance once your employer paid benefits run out. You need to

take care of yourself during stressful times to ensure that when you do get that big interview you can perform at your best! KEEPING RECORDS One final note, as mentioned at the start of this article maintaining and storing records is of the utmost importance. File your job hunting receipts in one place so you can find them easily. Remember to record the beginning and ending mileage on your vehicle every year plus track your mileage for job search related trips. You also may need to substantiate your expenses so keep strict tabs on these. Make sure appointments for job interviews are written down in an appointment book, Outlook or a PDA. Records should be kept for up to 10 years. Although a taxpayer has 3 years to amend a tax return, the IRS is allowed to go back 10 years to audit a taxpayer. After reading this article if you can think of any other job search related expenses, track the expense and if in doubt consult with your tax preparer to see if it is deductible.

ABOUT THE AUTHOR: Deborah Martin just joined the Southern CA Hospira Infusion Sales Team as a Medication Management Specialist. Prior to her career transition into Medical Device Sales, Deborah has 12+ years of Specialty & Hospital Pharmaceutical Sales experience. Deborah is also an active member of the following networking groups: the Medical Service Society of San Diego, EWGA (Executive Women’s Golf Association), InLandNet and LinkedIn.