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A TAXING DILEMMA: Unemployment

Millions of out-of-work Americans are looking for a job.

Throw on top of that another daunting task: taxes. And it can be downright overwhelming.

But any expenses related to finding a job, from mailing your resume to the gas you’ve used to go to an interview, are deductible.

And in some cases, so is the cost of relocation if you move across the state, or across the country, to start a new job, or to start a business, you can probably deduct your moving expenses.

For 2008, unemployment benefits are taxable, but that will change for 2009.

“For federal [returns] in ’08, it is taxable. In the ’09 [returns], the new law, the first $2400 is exempt from federal taxation in 2009,” according to Raphael Tulino, a media relations specialist for the Internal Revenue Service.

If you owe the IRS and you are strapped for cash, ask for help.

“Whereever you’re at, the IRS has flexible posture, this year especially,” Tulino said. “And whatever your obligation is, let us know. Contact us. Be proactive and we’ll work with you.”

And don’t forget, if you file for an extension it’s just an extra six months to file.

It’s not an extension to pay.

You still need to send in a good faith estimate of what you think you owe by next Wednesday, April 15th.

You can get some more Tax Tips from KESQ.com by clicking here.

KESQ News Team

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