Eligible Job
Search ExpensesWhen
asked if they thought certain job search expenses would qualify for tax
refunds, at least three-out-of-four workers were not aware that you may be able
to claim professional resume-writing services and resume paper. While more than half didn’t know travel to
and from job interviews may be claimed, the majority of workers were aware that
costs associated with relocating for a job may be tax deductible.
Number
of workers who didn’t know you could potentially claim the following job search
expenses:
·
Professional
resume-writing service – 78 percent
·
Resume
paper – 84 percent
·
Travel
(parking, tolls) to and from job interviews – 57 percent
·
Relocation
to another city or state for a job (moving trucks, travel, temporary housing,
etc) – 38 percent
“Documenting
the costs of a job search may deliver a tax break whether it results in a new
position or not. Job search expenses may be deductible when, totaled with
employee expenses and other miscellaneous deductions, they exceed 2 percent of
adjusted gross income,” said John Hewitt, CEO of Liberty Tax Service.
Eligible Work
Expenses
While
most workers understood uniforms, safety gear and home office equipment or
phone/Internet service may be tax deductible, at least half were not aware
certain travel expenses and home office furniture could potentially be claimed
depending on one’s work situation.
Number
of workers who didn’t know you may be able to claim the following work
expenses:
·
Uniforms
– 37 percent
·
Steel-toe
boots for work – 42 percent
·
Safety
glasses for work – 44 percent
·
Travel
to see clients – 50 percent
·
Travel
to work at different locations – 53 percent
·
Home
office equipment – 38 percent
·
Home
office phone/Internet services – 40 percent
·
Home
office furniture – 59 percent
“Home
office expenses may be claimed if you exclusively and regularly use your home
office as your principal place of business and/or meet other requirements. It’s important to be aware of the criteria
for any eligible work-related expense, so you can appropriately maximize your
return,” said Hewitt.
Eligible
Education Expenses
Continued
education is another area workers can often overlook when filing their
taxes. Just one-in-five (23 percent)
have claimed their education expenses on their tax return and more than half
(55 percent) were not aware that going back to school for new skills in their
current occupation may be tax deductible.
“With
so many workers transitioning to faster-growing industries post-recession, we
see greater investments in acquiring new degrees and certifications,” said
Rosemary Haefner, Vice President of Human Resources at CareerBuilder. “If you’re not researching which educational
or career-related expenses are tax deductible, you could be leaving money on
the table.”
More
than half of workers (58 percent) file their taxes in January or February, 28
percent typically file in March and 14 percent file in April or later.
How will workers
spend their tax refunds?
Most
plan to pay off debt or put the money into savings.
·
Pay
off bills – 41 percent
·
Put
into savings – 34 percent
·
Make
home improvements – 11 percent
·
Go
on vacation – 9 percent
·
Invest
it – 7 percent
·
Pay
back money they owe to people – 5 percent
Survey
Methodology
This
survey was conducted online within the U.S. by Harris Interactive©
on behalf of CareerBuilder and Liberty Tax Service among 6,000 U.S. workers
(employed full-time, not self-employed, government and non-government) between
February 9 and March 2, 2012 (percentages for some questions are based on a
subset, based on their responses to certain questions). With a pure probability
sample of 6,000, one could say with a 95 percent probability that the overall
results have a sampling error of +/- 1.27 percentage points. Sampling error for data from sub-samples is
higher and varies.