Tax time is just around the corner. If you’re one of the many job seekers who have been unemployed for a at least 6 months you may be wondering if you will still need to file taxes in 2009.  The answer is yes. Even if you were unemployed in 2008, you may still owe taxes if you received any type of income in 2008.  For job seekers who received unemployment insurance benefits, the IRS will tax all of that income after the first $2400.  It’s not fair, but some job seekers find that they owe taxes even if they didn’t work a job. 

There are ways to reduce your tax liability. Under certain circumstances the IRS allows job seekers to write off expenses related to their job search including but not limited to photocopying, resume services, educational services, travel expenses, employment agency fees and postage costs. If you followed our tips from earlier this year, you have kept all of your receipts related to your job search and can calculate your job search expenses with the help of an account.  For first time job seekers, job seekers changing careers and those who took a long break between losing their last job and beginning a new job search these tax deductions are not available.

To find out more information about deducting job search expenses visit www.irs.gov and search for the IRS Publication 529, Miscellaneous Deductions.