How do I correctly deduct Internet Fees when I use the net for looking for a new job in the same industry?

Question

I understand that a percentage of fees paid to Internet providers may be tax deductable when using the net to SEARCH for a new job. Does anyone know how to deduct this type of job search expense correctly?

Answer 1

You can deduct certain expenses you have in looking for a
new job in your present occupation, even if you do not get a
new job. You cannot deduct these expenses if:
1. You are looking for a job in a new occupation,
2. There was a substantial break between the ending of your last job and your looking for a new one, or
3. You are looking for a job for the first time.

But none of those apply, so it's deductible.

It goes on Schedule A, Form 1040, as a deduction NOT subject to the 2% limit.

As a rule, when something is used partly for personal use, partly for business, you have to reduce the deduction to reflect the proportion of use. There are exceptions to this rule. For instance, you can't deduct the *first* telephone line at all, for a business in your home, and in order to deduct business use of your home, it *probably* has to be a regular part of the home used exclusively for business (a child-care business doesn't have to meet that qualification.)

But if you have one room in your 10-room house that amounts to 20% of your house, do you deduct 10% (1 of 10 rooms) or 20%? The rules aren't clear, and on examination of a return, auditors decide differently.

The basic rule: if you are audited, and you've tried to be fair with Uncle Sam, you may be asked to pay the tax, and you may have to pay interest on the tax (since you've had use of the money, no big deal), but penalties will be minimal.

And if you've tried to be fair with Uncle Sam, and you *aren't* audited, at least you can sleep at night. The government *does* cost money to run, and most of us want to pay our fair share, although not a penny more. (These days, in fact, some of think we're getting too much government for our money.)

Answer 2

If you use the internet 100% for looking at job listings I would assume 100% is deductible. If you mess with Yahoo 99% of your time on the Internet and then look for jobs in the remaining 1% then only 1% could be deducted.

Answer 3

If your connection charges are charged by the hour, then you need to log how many hours you used your connection for your job search.

If you pay a flat fee, and have log records of how much time you used, you could take that percentage. If you did 1 hour a day, that would be 1/24 of your charge for example that you could deduct.

Your deduction would be included on Schedule A miscellaneous deductions, and are limited to the excess of 2% of your adjusted gross income.

Answer 4

My social ends in 01, and I was direct deposit, via Turbo Tax with the fees deducted from my return. I have not received any letters, nor show anything pending on my bank account. When I click on "Where's my Stimulus Payment?" I am told that they cannot track it and that I probably have entered information incorrectly. Well... that's impossible. I've also received varying information regarding the amount I am to get back. I only know that my child support is stuck in limbo somewhere and this is my fourth week without it. I am in dire need of my refund and I really hope it gets here soon. I cannot possibly wait until June.

Answer 5

Well these expenses would have to be greater than 2.5% of your income if they would be deductible at all. Only if you got the new job would they be deductible.