Life-Changing events can result in Tax Deductible Expenses

As a CPA and Financial Planner, I deal with the ups and downs of our economy on a daily basis. We can all use added deductions on our 2012 tax return; hopefully this will help you, a family member or friend moving for a job or those who are unemployed at the moment.

Job Hunting:  You may deduct any agency fees you pay during your job search.

Moving:  If you recently moved to another city for a new job or if your old job has a new location, you might qualify for a tax deduction on your job related moving expenses.  There are a few stipulations such as; your move must be 50 miles or more from your former home.  You must work full time for at least 39 weeks during a 12 month period immediately following your move.

Moving Expenses:  This includes the cost of moving personal and household items to your new home.  You may include travel expenses including lodging costs but not meals.

New Job/current occupation:
If, while traveling to another area, you are searching for a new position in your current occupation, you may be able to deduct the expense of traveling to and from the area. However, you may only deduct the travel expenses if the trip is primarily related to a new job search. In order to calculate any car-related expenses, you may use the standard mileage rate of 55.5 cents.

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