Job Search Expense Tax Deductions
An often overlooked set of deductions are those concerning job searches. Although there are restrictions, you can deduct up to 2 percent of your adjusted growth income in job-search-related expenses against your taxable income. Itemize these expenses in the miscellaneous tax deductions on Schedule A, even if they are for a job that you didn't get.
Other People Are Reading
-
Agency Fees
-
Whether they are employment or outplacement agency fees, or coaching fees, you may add them as a deduction. If your employer then pays you back for them during the same tax year, you must include that amount in your gross income. If your employer pays you back in a later tax year, you must include the amount in your gross income in the year that it was paid.
Resume Preparation
-
You can itemize the costs you spent printing and mailing copies of your resume. Specifically, this includes any preparation costs you paid to a third party, such as a typist or designer, as well as postage, photographs, letterhead and stationery. You can also include any costs for posting your resume online.
-
Travel and Transportation
-
If you have to travel to look for or interview for a job, you may include them in your deductions, as long as the trip is primarily job-related. If it is not, but there were still some transportation costs involved in looking for a job while in the area, you may include those specific expenses. You may include mileage rate---this varies year to year, but usually is around 48.5 cents per mile---as well as airfare, meals and lodging.
Other
-
Any phone or fax expenses to prospective employers, including long-distance calls, can be itemized, as long as you keep detailed records for them. Also keep track of dues to professional societies, coaching fees and any medical examinations required before hiring, as these can all be deducted.
What You Cannot Deduct
-
You cannot itemize any expenses that are spent looking for a job in a new field. This is the case if it's your first time looking for a job, you haven't held a job in that field for an extended period of time or if there has been a substantial break between jobs. If you held an internship or other job in the field during college, however, you will be able to count them as deductions. Personal expenses, such as clothing or hair appointments for an interview, cannot be deducted. You also cannot deduct any expenses that combined make up more than 2 percent of your adjusted growth income.
-
References
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
