Deducing Deductions: Taxpayers Are Confused About Job Expenses, Unemployment Benefits

The majority of Americans will seek professional help when they file their tax returns from either a tax preparer (33%) or CPA (24%), according to H&R Block and Ipsos. Another 15% will get help from family or friends when they file. Fewer than a quarter will do their returns themselves, either online (13%) or using computer software (11%).

Most taxpayers (56%) say that losing their job would have the greatest impact on their taxes, but only 22% would think about their taxes after becoming unemployed. In addition, few are aware of how that affects their taxes. For example, only a minority know they can deduct job-related expenses, including:

Gas mileage (37%);

Moving costs (34%);

Resume help (17%); and

Wardrobe purchases (17%).

While their knowledge of taxes related to unemployment has improved over the prior year (presumably because a greater proportion have been unemployed during that time), 30% believe that they do now owe taxes on income from unemployment benefits. Another 32% believes they owe taxes on the full amount of benefits they receive, when in fact they owe only after a certain amount. [Finance]

Source: “Poll Of American Taxpayers Points To Poor Understanding of Laws That Could Affect Their Liability,” Ipsos, Nicolas Boyon, SVP, 1700 Broadway, 15th Fl., New York, NY 10019; 646-364-7583; nicolas.boyon@ipsos.com; www.ipsos-na.com.

© Copyright 2011, EPM Communications, Inc. May not be reproduced without written consent of publisher.

Leave a Reply

Your email address will not be published. Required fields are marked *