Tax Deductions for Job-Seekers
Seven Tax Tips from the IRS
The Internal Revenue Service reminds job seekers that you may be able to deduct some of
the expenses on your tax return. Here are seven things the IRS wants you to know about
deducting costs related to your job search:
1. To qualify for a deduction, the expenses must be spent on a job search in your current
occupation. You may not deduct expenses you incur while looking for a job in a new
2. You can deduct employment and outplacement agency fees you pay while looking for a
job in your present occupation. If your employer pays you back in a later year for
employment agency fees, you must include the amount you receive in your gross income, up
to the amount of your tax benefit in the earlier year.
3. You can deduct amounts you spend for preparing and mailing copies of your resume to
prospective employers as long as you are looking for a new job in your present occupation.
4. If you travel to an area to look for a new job in your present occupation, you may be able
to deduct travel expenses to and from the area. You can only deduct the travel expenses if
the trip is primarily to look for a new job. The amount of time you spend on personal activity
compared to the amount of time you spend looking for work is important in determining
whether the trip is primarily personal or is primarily to look for a new job.
5. You cannot deduct job search expenses if there was a substantial break between the end
of your last job and the time you begin looking for a new one.
6. You cannot deduct job search expenses if you are looking for a job for the first time.
7. The amount of job search expenses that you can claim on your tax return is limited. You
can claim the amount that is more than 2 percent of your adjusted gross income. You figure
your deduction on Schedule A.
For more information about job search expenses, see IRS Publication 529, Miscellaneous
Deductions. This publication is available on www.irs.gov or by calling 800-TAX-FORM.
IRS link: http://www.irs.gov/newsroom/article/0,,id=210523,00.html
|Note: This information does not constitute tax advice
from Pro Job Coach, rather I'm simply sharing tax
information that has been provided by the IRS.
Consult your tax professional to discuss
your particular situation.
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