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Your Job Search Expenses May be Deductible!

If you happen to be searching for new employment, you may be able to deduct expenses from your individual income tax return. This deduction remains valid even if you don’t land that perfect job.

Consider these important facts relating to tax deductible job search expenses:

  1. Same Occupation: Expenses remain deductible when the job you’re seeking falls into the same category as your current line of work.
  2. Résumé Costs: Costs associated with mailing and preparing your résumé are tax deductible.
  3. Travel Expenses: Travel costs to look for a new job are tax deductible. If the main purpose of your trip entails searching for employment, then expenses including meals, transportation and lodging are all deductible. Even if your trip includes leisure activities, some expenses may still be deductible. (Be prepared to support your claim for seeking new employment by documenting interviews and meetings with prospective employers.)
  4. Placement Agency: If you use job placement or placement agency services, the fees associated are tax deductible.
  5. Reimbursed Costs: If an employer or other party reimburses your job search expenses, you forgo tax deductible options.
  6. Schedule A: Report job search expenses on Schedule A of your 1040 tax return and claim them as miscellaneous deductions. To count towards reducing your taxes owed, your total miscellaneous deductions must be more than two percent of adjusted gross income.

Job search expenses aren’t always deductible; you can’t itemize them when:

  • you’re searching for employment in a new profession;
  • a substantial amount of time elapsed between jobs; or
  • you’re looking for a job for the first time.

For more information regarding deducting job hunting expenses, refer to Publication 529, Miscellaneous Deductions. IRS tax forms and publications are available any time at IRS.gov/forms.

For other tax accounting services, including CFO services, cash flow, budget forecasting and business consulting, contact the experienced accountants at Patrick & Robinson CPAs: Office@CPAsite.com or 904-396-5400.

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