Showing posts with label Tax Deduction. Show all posts
Showing posts with label Tax Deduction. Show all posts

Tuesday, April 15, 2008

Ugh! Tax Day 2008

It's no secret that April 15 isn't my favorite day of the year. Not far behind it are Jan. 15, June 15, and Sept. 15 -- the dates that estimated taxes are due.

In talking with lots of other self-employed resume writers, they feel the same. There's just something about writing a hefty check to the IRS (and likely, your state department of revenue) four times a year (quarterly estimated tax payments) that's depressing.

At the gas station today, the clerk's sister came in bearing the clerk's finished tax return. She was getting a $700 refund. I think the last time I got a refund (at least one that I didn't have to apply to next year's taxes) was 1995 (the year before I started my business). A friend of mine is used to getting a $5,000 annual refund (he and his wife have a bunch of kids, which = tax deductions). Last year, he became self-employed for the first time. This year, he had to write a small check to the IRS. That's painful ...

Every year, probably like you, on April 15, I vow to:
1) Make more money next year (yes, I make this resolution on New Year's too)
2) Pay less in taxes by being smart with my deductions and contributions (for example, to my retirement account).

We'll see how it goes this year. But I got a head start by taking a look at this article about 2008 tax issues. I'll let you know if I come across any other good information throughout the year -- or feel free to post a comment on this thread with your suggestions.

Sunday, December 23, 2007

Job Search Expenses May be Tax Deductible

Don't forget to remind your clients that their job search expenses (and your services!!) may be tax deductible. From Kiplinger's Personal Finance Magazine:

"You can deduct many of the expenses related to your job search -- whether or not you end up getting hired -- as long as the new job is in the same field as your current job. The same rules apply when you're leaving the military, as long as you can prove your new job uses the same skills as your old one, says Martin Nissenbaum, national director of personal income-tax planning for Ernst & Young.

As long as you are looking in the same field, you can deduct most expenses related to the search (but only to the extent that they exceed 2% of your adjusted gross income, and only if you itemize.)

Find more information on About.com or in IRS Publication 529.

The following items may be deductible:
  • Resume and job coaching services
  • Employment agency fees
  • The cost of job-hunting phone calls and mailings
  • The cost of printing resumes
  • The cost or transportation and lodging when you travel for job-search meetings
Keep extremely accurate records, including a log of whom they meet with (including business cards and copies of applications and letters), where and when they met, and a description of the job."