If you’re on the lookout for a new job, you might be able to deduct some search-related expenses on your taxes. Here’s what the IRS wants you to know:
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• You can only deduct expenses for a job search relating to your current occupation. Unfortunately, you cannot deduct job search expenses if there is a “substantial break” between your last job and your job search or if you are looking for your first job.
• You cannot deduct expenses that are reimbursed by an employer or other party.
• You can deduct fees paid to employment and job placement agencies and the costs relating to preparing and mailing your résumé to prospective employers, including professional proofing and editing.
• If you travel to an interview or another search-related activity, you can deduct those expenses, but only if the primary purpose of the trip is to look for work.
• Job search expenses will usually be claimed as a miscellaneous item deduction, and you can only deduct the portion of miscellaneous deductions that exceed 2% of your adjusted gross income.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov[8]
[8] IRS.gov, August 25, 2017
