Members of the Maryland Association of Certified Public...


March 10, 1995

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: I have been unemployed since September. Can I deduct some of the cost of searching for jobs, such as sending out resumes and mileage for searching for jobs. How do I figure it out and where do I report it? Is there any limit? I am filing a joint return and we are itemizing.

A: Yes, you may deduct certain expenses that you have incurred in looking for a new job as long as you are seeking work in the same type of occupation that you were engaged in by your most recent employer. These expenses include the cost of typing, printing and mailing resumes; employment agency and out-placement fees and travel and transportation expenses. The expenses are considered miscellaneous itemized deductions and are reported on Schedule A. Travel and transportation expenses are first accumulated on Form 2106 or 2106-EZ and then carried to Schedule A.

Q: A 1099 dividend report shows gross dividends of $129, with ordinary dividends of $32 and a capital gain of $97. On my tax return, what do I list as capital gains and what do I list as gross dividends?

TC A: You report all dividends on Schedule B part II; the gross dividends of $129 are reported on Line 5. The capital gain of $97 is listed on Line 7, where it is subtracted from the gross dividends. The $97 capital gain is also reported again on Schedule D, Line 14.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To submit a question, call Sundial, The Sun's telephone information service, at (410) 783-1800. In Anne Arundel County call 268-7736, in Harford 836-5028, and in Carroll 848-0338. Using a touch-tone phone, enter 6225 after the greeting. Push 1 to submit a tax question; state the question in full. Push 2 to hear a tax tip. Selected questions will be answered in the Business section.

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