Tax Facts for the Jobless

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If you were unemployed in 2012, or if you’re still out of work, make sure you know your tax facts—many Americans don’t.

Did you know…
   …that unemployment benefits are taxable? If you collected unemployment during 2010, you will get a 1099-G, with the amount you were paid. Report this amount as regular gross income on both your state and federal returns. 
 …you might owe money, even if you were/are unemployed? Sadly, it’s possible that even with a (likely) decrease in income, you could owe taxes on that money; severance and vacation pay are also taxable.

 …that you can deduct many expenses related to your job search! Assuming you itemize, and don’t take the standard deduction (and some other restrictions), you can save money on a number of expenses. See below for some details.

Expense                                  Deductible?

Haircuts, clothes for job interview         Um, no

Travel for job interviews             Deduct it!

Printing and mailing resumes         Deduct it!

Your home office              Maybe, check our guidelines 

Outplacement firm fees          Deduct it!

Training Only if it’s in your current field 

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