LOST JOB

In the case of facing unemployment, there are various job search expenses that qualify as deductions when actively searching for a job in your current profession.

It is important to keep in mind that you may not deduct expenses in search of a job in a new profession, a first job, or a job post a notable break.

These expenses include resume, employment agency, travel, and mailing costs so long as they aid in your job search. You can deduct your job search expenses on Schedule A, Itemized Deductions, which you will claim as a miscellaneous deduction.

If you have received unemployment compensation during year, you must report this compensation as your gross income. State and federal unemployment insurance benefits and railroad unemployment compensation benefits are all considered taxable income and you may be required to make quarterly estimated tax payments. However, you can choose to have your income tax withheld.

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