More Tax Tips for Grads Entering the Work Force

Last week I listed 5 things to consider.  Here are some more. (1) Remember that graduation gifts are not taxable to the recipient, so you do not need to be concerned with taxes on them. (2) If you worked a side job or had your own small business while in school, be sure to keep all records for at least seven years.  If you were self-employed and continue to be so, you will probably have to start paying estimated taxes for the current year. (3) Moving expenses related to taking a new job  are no longer deductible (except for members of the armed forces). (4) Starting a job mid-year can result in over-withholding based on the assumption that the employee earned the same amount for the entire year. Newly employed grads should check with their employer to see if part-year withholding is available.