Your Pongo Membership Could Mean Tax Savings

Your Pongo Membership Could Mean Tax SavingsTax SavingsYour Membership Could Mean Tax SavingsGood news for last-minute tax filers The money youve invested in your job search may be deductible on your federal income taxes - and that includes your membershipcosts. Of course, nothing is simple when it comes to the tax code. With the April 15 tax deadline mere days away, heres what you need to know about the tax deductibility of job search expenses.The federal government offers an income tax break for something called Unreimbursed Employee Expenses, which includes money spent preparing and sending resumes as part of a job search. In general, you can probably deduct some of your job search expenses ifYou itemize deductions on Schedule A of your fasson 1040 andYour Unreimbursed Employee Expenses exceed 2% of your adjusted gross income (AGI) andYour AGI is less than $78,200 (or $156,400 if you are married filing jointly).If you meet these criteria, you can deduct the expenses that exceed th e 2% threshold.EXAMPLE If your AGI is $50,000, the first $1,000 in expenses is NOT deductible (2% of $50,000 = $1,000). But anything you spend over $1,000 is deductible. So if you have $1,050 in expenses, you can deduct $50.That may not sound like much, but remember, this is not JUST your job search expenses. You can combine many other work-related expenses with your job search expenses to exceed the 2% threshold.Eligible Unreimbursed Employee Expenses include the followingTravel, baggage charges, meals and lodging, or cleaning and laundry expensesDues to chambers of commerce and professional organizationsLegal fees related to doing or keeping your jobLicenses and regulatory fees for your trade, business, or profession andTax preparation fees.Of course, since were referring to the tax code, there are a few other caveats. You cannot deduct job search expenses if youre looking for a job in a new occupation, if there was a substantial break between the end of your last job and the star t of your job search, or if youre looking for a job for the first time.If youre not sure what you spent on your membership in 2007, contact the Customer Support Team.For complete information on these deductions, consult your tax advisor or read this IRS publication.