Jayna, a social worker, would like to deduct expenses incurred looking for a new
ID: 2598675 • Letter: J
Question
Jayna, a social worker, would like to deduct expenses incurred looking for a new job. She can do this as long as:
* She looks for a job in a new occupation.
She looks for a job within her current occupation. T
here has been a lengthy break between being employed and looking for a job.
She has recently graduated from college with a degree in a different field. Mark for follow up
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During the year, Valentina works four months in Custer State Park, South Dakota, where she earns $16,000. She spends two months of the year in Columbus, Ohio, her birthplace and where she visits family. She spends six months of the year in Key West, Florida, where she earns $17,000. Where is Valentina's tax home?
* Ohio, because she was born in Ohio.
Florida, because she spends more time there and has more income from Florida.
Valentina has no tax home because she makes substantially equal amounts of income in both places.
Valentina can choose her tax home because she makes substantially equal amounts of income in both places.
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A taxpayer who claims employee business expenses may have to show an IRS examiner:
* The amount and business purpose of the expense.
A copy of their employer's reimbursement plan.
The business relationship between the employee and the recipient of a gift or entertainment.
All of the above.
Explanation / Answer
Answer # 1:
She can claim deduction as long as she has an income. In the present case, as she has not earned any income, expenses incurred on looking for job are not deductible.
Answer # 2
Her tax home is Florida. Placof birth has nothing to do with tax home. In Forida, she spends half of the time and remaining half is spread over two more stations. As suhc, her tax home would be Florida.
Answer #3.He needs to show amount of expense and establish business ;purpose of the same as he is claiming deduction towards employee business expenses.
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