This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Tax Savvy Can Help Jobless Americans Save

BOSTON ( TheStreet) -- The estimated 15.3 million Americans out of work could find relief this tax season if they know where to look for it.

For those on the job hunt, costs for preparing resumes, hiring a headhunter, legal advice, long-distance calls and travel can be itemized and deducted. For those who landed a new position in a different city last year, moving expenses can also be deducted.

The key to taking advantage of these tax breaks is saving receipts and records for the purchases.

"For a single taxpayer, this could mean a savings of as much as $240 in income taxes," says Mark Steber, chief tax officer for Jackson Hewitt (JTX). "Married taxpayers who both received unemployment benefits during 2009 will see even greater savings, given they are each eligible for the exclusion."

The federal Workers, Homeownership, and Business Assistance Act of 2009 extended unemployment benefits by 14 weeks. In states where the unemployment rate is at 8.5% or higher, individuals will receive an additional six weeks of aid.

Traditionally, such compensation has been considered taxable. But, thanks to the American Recovery and Reinvestment Act, the first $2,400 of unemployment benefits received in 2009 wasn't taxed. Public assistance programs, such as food stamps, also aren't taxable.

Not everyone will be able to recoup some of their losses by April 15. Freelancers and independent contractors are considered employed, if not gainfully so, if they earned more than $400.

Still, there are numerous expenses the IRS allows freelancers to deduct, such as those for business cards, insurance, technology purchases and Web site design. If it's job related, chances are a case can be made for their deductibility.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.21 0.09%
FB $79.51 -0.30%
GOOG $574.18 0.50%
TSLA $200.07 1.40%
YHOO $42.67 -3.30%

Markets

DOW 18,204.15 -84.48 -0.46%
S&P 500 2,106.19 -11.20 -0.53%
NASDAQ 4,975.9190 -32.1770 -0.64%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs