This week we’re sharing tips on filling out the FAFSA, what steps to take when transitioning from two incomes to one, as well as what expenses are tax deductible while job-hunting. Here’s what you need to know now.

  • Despite thinking you might be ineligible to receive financial aid for your college-bound child, Janet Berry-Johnson from Forbes suggests still filling out the Free Application for Federal Student Aid or FAFSA. In fact, families that earn more than $200,000 a year can still qualify for need-based aid from some private colleges. Although the process is often time consuming and tedious, Berry-Johnson advises starting early. To prepare, she recommends gathering your last tax return, records of untaxed income, balances in all asset accounts and a list of schools your child is interested in attending. And finally, if your family has experienced a sudden drop in income, that’s not reflected in your tax information from the previous year, Berry-Johnson suggests presenting the necessary documentation to financial aid administrators at prospective schools.
  • Are you in the midst of a household income transition? Whether it be the loss of a job or parental leave, living on one income is possible and should not spell financial doom. Wise Bread’s Andrea Cannon has developed a list of steps to take in preparation for the transition. She suggests conducting a one-income trial run prior to the change, in order to adjust to a more frugal lifestyle. Other tips include making a budget using a stay-at-home calculator, setting aside a minimum of three to six months’ worth of expenses, paying off as much debt as possible and implementing money-saving practices whenever possible.
  • If you’re one of the millions of Americans on the hunt for a new job, there’s a silver lining courtesy of the IRS. As long as you’re not looking for your first job–and you’re seeking a job within your current field–some job-hunting expenses are tax deductible. John Hewitt, writing for Business Insider, advises job seekers to carefully track and record the time spent looking for a job, as well as any other related expenses. In most cases, you can claim the standard mileage rate of 57.5 cents, both to and from job interviews. Other deductible expenses include resume printing and mailing costs, employment and agency fees, and online job search fees. This transitional period can cause financial distress and uncertainty, so every tax break counts.*

*All tax information provided in this blog post is intended as a convenient source of information. This information is general in nature, is not complete, and may not apply to your specific situation. Please consult with your own tax advisor regarding your specific tax needs.

Leave a Reply

Your email address will not be published. All fields are required.

This site uses Akismet to reduce spam. Learn how your comment data is processed.