Where are all the Jobs?

Monday, February 7, 2011

The Work Buzz's Latest News: What can job seekers deduct on their taxes?

What can job seekers deduct on their taxes?

Posted: 07 Feb 2011 06:30 AM PST

Rarely does anyone greet tax season with a big smile, an excited march to the file cabinet and a celebratory beer. More often the arrival of your W-2 statement in the mail causes a sigh, a frantic search for important documents in your desk (and on the floor and in the trash) and a therapeutic six-pack of beer just to get you through it all.
Now, we can't erase the pain of filing your taxes; that's between you and Uncle Sam. However, we might be able to get you a little more cash at the end of the year, or maybe cause you to pay less. See, many job seekers don't realize that they can claim some of the expenses from their job seeking efforts on their taxes. And even for those who do know, they don't always understand what is and isn't a valid claim.
According to the Tax Breaks for the Unemployed Survey 2011 conducted by Complete Tax, not everyone is clear on the rules for expensing job search efforts. The survey asked readers to declare the following statements true or false. Before looking at the answers in the chart below, see if you can answer the correctly.

Haircuts or clothes necessary for job interviewing can be deducted
Travel for job interviews can be deducted
Printing and mailing résumés can be deducted
A home office used to help in a job search can be deducted
Outplacement firm fees can be deducted
Classes to learn new skills outside the person’s trade can be deducted

Here are the answers and the percentage of respondents who answered correctly and incorrectly.

In fact, only 1 percent of surveyed taxpayers answered all six correctly. As you can see, outplacement firm fees, some résumé expenses, and traveling for interviews can be deductible. This means that you could be hurting yourself financially but not claiming them, or at the very least you're not taking full advantage of the financial options available to you.
Perhaps more surprising is how confused taxpayers are when it comes to who has to file taxes and who doesn't. For example, 43 percent of taxpayers thought unemployed workers can delay paying their income taxes, and 44 percent thought health care costs are tax deductible for anyone unemployed. Neither is correct. Even unemployed taxpayers must pay their taxes on time and their health-care costs are not tax deductible.
If you're searching for a job, and especially if you're unemployed, money is probably tight. However, if you can afford to have a professional prepare your taxes for you, you should because they probably have other tips to help you save money due to your job search. And if you can't, you can always do some digging to see what is and isn't deductible, both job-related and not. (The full survey is an interested read if you have the time.)
How are your taxes coming along? Are you waiting until the last-minute to file them or are you doing them now in hopes of receiving a refund? Do you have any other tips for fellow job seekers come tax time? Leave them in the comments!
(Also feel free to lament the fact that W-2s are just generally depressing. If you've been unemployed, the number is a major bummer. Or your take-home isn't as big as it should be. Or your total earnings seem small for all the hard work you put in. Whatever it is, let this be your tax season therapy.)
Related posts:

Tax time dilemmas for workers and job seekers Tax season can be, well, taxing to say the least,...
Job Offers Come In, Salary Goes Down Today's unemployed job seekers haven't had the easiest time finding...
Tax tips for freelancers On Wednesday, I wrote a post about everyone’s favorite time of year:...

Jobs Rated 2011: Ranking 200 Jobs From Best to Worst | CareerCast.com

Sunday, February 6, 2011

10 Best Ad Campaigns "Lifes too short for the wrong job" (Pic) |... - StumbleUpon

Saturday, February 5, 2011

Moola Days

How to be a Smart Consumer

Posted: 05 Feb 2011 12:53 PM PST

As consumers, in the mad advertising world we live in, being wary of the prices and being knowledgeable about what you buy goes a long way to being a smart consumer. Did you know that on average, a person sees about 3,000 advertisements per day? This means literally almost every minute of your life, you are being advised to do something contrary to what you may think. The first step of being a consumer is learning why brands, well… brand. Although you may think well, I only watch so much T.V., there are many ways companies influence consumers to purchase their products even without the use of the media believe it or not.

Branding

The point of branding is trying to make consumers aware of their products and to make them want to purchase their products/services, despite you even knowing it. Although I know it may sound weird, it is true. The point of branding is to influence a large audience and when it comes to a point in time when you think you may need it, whether it be from peer pressure or your everyday needs, the point of branding is to ensure you are more likely to purchase their products/services sort of indirectly. An example would be a Nike sweater. Although you may not be aware of it, I’d bet at least 1/10 people you see while walking around is wearing something that says Nike on it. When there is ever a point in time when you see this happening, that is when you know they are on another level. Branding is all about influence and the mental scheme behind it is what makes it so powerful in the marketing world. As a smart consumer, it is crucial to know this.

There are several steps you should take before purchasing something you think you may need, or desire. By following these steps, you will become a much smarter consumer. Because nowadays more often than not, consumers purchase things without thinking twice.

Prices
- Compare prices with other known alternatives, especially with electronics.
- Look for deals, discounts, and coupons online.
- Calculate. If you are purchasing something that uses a scale to determine the price, be sure to calculate the price of one unit and compare it with other products that way you know what you are dealing with. Products that uses a scale can be pretty misleading.
Research
- Read reviews online on the products you are looking for before purchasing.
- Ask a friend or relative if they have or have heard of the product/service you are interested in.
- See if the company is reliable, consistent, and has good customer service.
- Check if the company has a positive record on known sites like the Better Business Bureau (BBB), a company that alerts the public of frauds against consumers and businesses, provide information on ethical business practices, and act as mutually trusted intermediaries between consumers and businesses to resolve disputes.
- Deal with reputable, reasonable companies to ensure there are no extra headaches on the way.
Ask your self
- Do you really need it?
- What do you like about it? Is there a certain component you like? If so, are there any other alternatives?
- Are you able to afford it with your current finances?
- Will you get bored of it and not use it after a month?
- Are you purchasing it because of the hype?
  - Wait for the hype to settle down and if the reviews still stands tall after a month, it is probably a worthwhile purchase. Also, on top of that, you get the benefit of having lower prices.
- Are you being logical and have good arguments?
Refrain from compulsive buying
- Don’t buy stuff just because you enjoy shopping. This is what companies want so they can fill their pockets.
Read the fine print
- If something is too good to be true, it probably is. If you are uncertain about something, it is recommended to read the fine print to ensure you are not surprised with something misleading.
Don’t purchase unnecessary things
- Although snacks can be enjoyed every now and then, don’t make it a habit. It is generally bad for your wallet and your health. This applies to everything else that is unnecessary as well.
Don’t buy things you can do
- An example would be prepared food. If you are able to slice fruits, do you really need to pay extra for something you can do in matter of seconds?
Every purchase should have a purpose
- Consider more than one factor when purchasing products. Don’t let one great feature cloud your judgment. For example, while price is an important factor, low price alone shouldn’t lure you into an inappropriate purchase decision. Important factors such as brand quality, and your individual usage intentions should be taken into account whenever making purchase decisions. Even a “cheap” item needs to have an established purpose before it’s purchased.
Recognize trends and patterns
- If you recognize that a certain store you occasionally go to has certain offers in particular days, it may be beneficial to take advantage of this smart thinking and wait a couple of days for the reduced prices.
- Sometimes stores send out catalogs. Having an idea of when they come can prove to be a life saver for your wallet.
Buy in bulk for non-perishable items
- Canned foods are an example of non-perishable items that you can stock. The point of purchasing these items in wholesale is to ensure you are getting the most bang for your buck and because they have long expiration dates. When purchasing in bulk, it is crucial to take into consideration every single penny when evaluating its worth.
Don’t shop on an empty stomach
- If you shop on an empty stomach, you are more likely to give in to the temptations and purchase something you would regret buying. Statistics show on average people will buy 20% more stuff if they go shopping hungry.
Keep your receipt
- If anything goes wrong, keeping your receipt ensures you a temporary warranty. If anything, it is there to help consumers so be sure to stash them somewhere safe.