Tax preparation advice for the unemployed
Posted on Mon, Mar 15, 2010 @ 08:10 AM
The April 15 deadline for personal tax filing is just around the corner. If you've
been unemployed in the last year, you may not know how to approach your taxes. Don't let questions about claims and returns allow you to procrastinate. Although you may not have the same steady salary you've had in past years, you can still take advantage of several tax claims and government offers in order to make the most out of your tax situation. Here are just a few:
- Severance pay. If you received a severance package from your last employer, you should file for taxes as soon as possible. You may be sitting on a substantial refund.
- Job search claims. Job search expenses are often overlooked as items you can deduct. If you've traveled for interviews, subscribed to job posting Web sites or received resume counseling, you can claim these expenses on your taxes. Looking for work can be a job in itself, so make sure you treat it as work from home when you file for taxes.
- Unemployment. Filing for unemployment is a smart option. Not only will you receive a monthly taxable income, but it also helps the economy as it is part of the stimulus package. It's there for you to use, so take advantage of it.
- Work from home. Many workers who lose their jobs during a recession make ends meet by doing contract or freelance work from home. Those who work from home can claim the expense of the home office, including portions of utilities and insurance on the home. Direct expenses such as office supplies can also be claimed.
Tax season can be stressful, especially if you are unemployed. There are many resources available to help you learn how to accurately file for taxes and get the best returns. Click here for a list of tax-related resource sites.
