Is paying for a resume writing service tax deductible?
What is the key question that a tax accountant professional will ask me?
Must I be an "itemizer" on my taxes?
Will I get a dollar for dollar return or ?
Just saying it’s tax deductible isn’t enough for me to give up my cash…so what would the IRS be giving me back ? The serivce wants me to pay $700!!! sounds interesting to me.
What gives?
Thanks
If you are looking for a new job in your current occupation, or are looking for your first job, you can deduct amounts that are over 2% of your income for that year as an itemized deduction. If you don’t itemize, there is no tax savings. If you DO itemize, the savings isn’t dollar for dollar – it’s the amount over your standard deduction times your tax bracket percent.
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This is considered a job search expense.
You can "itemize" such expenses (I think only if this type of expense is more than 2% of your AGI) , but you must have $5450 or more of schedule A items to see a difference in your taxes for 2008. If you have more than that, you would see a 10% drop in your taxes for the excess.
References :
Yes…but…..(there is always a "but" with taxes).
Job search expenses are deductible as an Itemized Deduction subject to 2% of your income so there is only a tax benefit if you 1) Itemize, and 2) Have enough misc. deductions to get you over the 2% hurdle. For most people, the net tax effect of a resume’ service is $0.00.
No, it is not dollar for dollar. If you itemize and can get over the 2% hurdle the net tax effect will be only $105 (assuming that you are in the 15% bracket and are already over the 2% hurdle).
References :
If you are looking for a new job in your current occupation, or are looking for your first job, you can deduct amounts that are over 2% of your income for that year as an itemized deduction. If you don’t itemize, there is no tax savings. If you DO itemize, the savings isn’t dollar for dollar – it’s the amount over your standard deduction times your tax bracket percent.
References :