Reimbursement for Expenses When Looking for a Job
Numerous reasons may prompt you to look for new employment. Maybe you were laid off from your a job or perhaps you're ready for a change. It takes times to locate suitable employment, and during this time you may spend hundreds of dollars out of pocket on your job search. While the IRS does not offer reimbursements for expenses incurred with looking for a job, you can claim a deduction for certain expenses and reduce how much you pay in taxes.
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Consideration
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The Internal Revenue Service will allow you to deduct some job-hunting expenses, but only if you're seeking employment in your current occupation. Regrettably, if you go to school for a new occupation or change your career path, you're not eligible to deduct expenses incurred with your job search.
Travel Expenses
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If the job market in your current area is stale and you can't find suitable employment, you might consider relocating and taking a position in another city. Acquiring employment in a new city may entail travel at your expense. This can include the cost of gasoline to drive to the city, or the ticket price for an airplane or train. Once you reach your destination city, you'll need to rely on public transportation, a car rental and hotel accommodations. Travel expenses associated with a job hunt are tax deductible.
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Employment Agency and Resumes
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If you are looking for a job in your current field, you can deduct the fee for using an employment agency or recruitment agency. Recruitment agencies have relationships with various companies, and they will match your skills, education and experience with potential companies. The cost of using a resume-writing service and expenses incurred with mailing resumes -- such as the cost of paper, printer ink, envelopes and stamps -- are also tax deductible.
Tax Deduction Limits
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Even though tax deductions are available to assist people looking for a job, these deductions are not available to everyone. For example, deductions are not available to individuals looking for their first job. In addition, job seekers cannot claim a deduction if there has been a considerable amount of time between the date that they left their former job and the date that they begin looking for a new job. Contact the IRS or an accountant to determine whether you are eligible for a tax deduction after a gap in employment.
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