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.