Business & Finance Taxes

Tax Deductions & Unemployment

    Interest Penalty

    • In rough economic times, many individuals have no choice but to withdraw savings from deferred interest accounts before they have reached maturity---often resulting in hefty penalties. The total amount of these penalties may be deducted from gross income to reduce tax liability.

    Tuition and Fees

    • The federal government created tax benefits for education to help offset the heavy financial burden of continuing education. Taxpayers choosing to further their education during periods of unemployment may opt to take the tuition and fees deduction. The amount of tuition and other qualifying expenses, such as the cost of books and computer equipment, is eligible for the deduction.

    Job-Seeking Expenses

    • Anyone who has ever been unemployed knows that sometimes finding a job can be hard work. The dollars you spend on the job hunt can work for you as deductions. Possible deductions include career counseling fees, resume printing costs and parking fees incurred while you are interviewing.

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