Job seekers can enjoy several tax breaks
CHICAGO, IL -- With the April tax deadline about two weeks away, millions of taxpayers will be scrambling to file on time and, as a result, could overlook the numerous tax credits and deductions available to workers, freelancers and job seekers. John A. Challenger, CEO of global outplacement consultancy Challenger, Gray & Christmas Inc. says the tax breaks for job seekers could be especially beneficial, considering that the number of jobless Americans averaged about 13.7 million throughout 2011.
"It's undoubtedly an overwhelming task for most people to sift through all of the materials to figure out eligibility for a particular deduction or credit," Challenger said. "For the unemployed it can be even more daunting, since their top priority is to find a job, not a tax credit. However, it's critical that these individuals seek out any financial advantage they can achieve while between jobs.
The IRS recognizes the difficulties of those who have been unemployed for a prolonged period of time and have announced measures to help those who cannot meet their financial obligations. The IRS will consider offers in compromise, settling the debt for less than the full amount. Unemployed and job seeking tax payers can find miscellaneous deductions from Publication 529 on the IRS website. For detailed explanations on deductions, Challenger advises taxpayers to visit the Internal Revenue Service website or seek the counsel of a professional tax advisor or accountant.