| 1. Job Related Relocation | | | | 4. Standard Deduction vs. Itemizing |
| Everyone knows that the job market is not as good | | | | Most college graduates will want to take the deduction |
| as it once was, and this can be frightening for a new | | | | of $5,450. If you are a married graduate, you can take |
| graduate entering the workforce. Fortunately, there is a | | | | the joint deduction of $10,900, and a heads of |
| helpful tax deduction that can be very helpful if you | | | | household can claim $8,000. Taking the standard |
| are required to relocate to a job 50 miles or more | | | | deduction will make preparing your return considerably |
| away. However, the rules are somewhat complicated | | | | easier, but you should also consider the benefits of |
| and you might want to speak with a tax professional | | | | iteming your return. If you think your total number of |
| to make sure your expenses qualify. For example, | | | | deductions and credits will exceed your standard |
| gasoline and hotel expenses can be claimed, while | | | | deduction, then you might want to itemize for |
| food cannot. | | | | maximum savings. This may seem difficult, but most |
| 2. Avoid Credit Predators | | | | tax professionals - and even tax preparation programs |
| Although this is not technically tax advice, it is a good | | | | - can easily tell you if taking the standard deduction |
| idea to beware of creditors that prey on recent | | | | would benefit you or not. |
| college graduates. Credit card companies aggressively | | | | 5. Charitable Donations |
| target college students with on campus promoters, | | | | While any taxpayer can claim this credit, the charitable |
| and will continue to do so after graduation. If you avoid | | | | contributions deduction can be especially useful to |
| opening too many accounts, then you will have extra | | | | many college graduates. If you donated a lot of your |
| money to make sure you can pay your full tax liabilities. | | | | old books, or had to downsize to relocate for a new |
| 3. Student Loan Interest | | | | job, then be sure to keep track of all the items you |
| If you took out any student loans to help you pay for | | | | donate. You can deduct the value of all items you |
| college then you can now take advantage of the | | | | donate, as long as you itemize your return and have |
| student loan interest deduction. It allows you to | | | | proof of your donation. |
| subtract the interest paid on your loans, which can be | | | | 6. Self-Employment |
| quite a chunk of change for many recent graduates. | | | | This year more than ever, college graduates - |
| However this deduction does begin to phase out once | | | | especially those majoring in a technology related field - |
| your income reaches a yearly total of $65,000. For | | | | are considering self-employment. Luckily for them, |
| more information, check out page 28 of this IRS | | | | there are dozens of tax credits and deductions out |
| publication. | | | | there for self-employed individuals. |