Good news! Some job hunting expenses may be tax deductible!
You can only write off expenses that are related to the same occupation you were in prior to the layoff. If you were in nursing and now looking for work as a heavy equipment operator, you can't write off these career-transferring expenses. Students are unfortunately not included in this tax deduction because the tax law only allows you to write off expenses incurred in searching for another position in your present occupation.
What you can write off
· Employment and outplacement agency fees.
· Subscriptions to job boards
· Resume services.
· Printing and mailing costs of search letters.
· Want-ad placement fees.
· Telephone calls.
· Travel expenses, including out-of-town job-hunting trips.
Even self-employment efforts could count at tax-filing time. The costs associated with investigating or attempting to start your own business, as long as it's in the same field as your current profession, may be tax deductible.
Keep in mind that you can only deduct expenses that exceed 2% of your adjusted gross income. Example: If your gross income for 2010 was $60,000, two percent of that is $1200. That means only if your job-hunting related expenses exceeded $1200 would this miscellaneous itemized deduction item apply to you.
For more information about job search expenses, see IRS Publication 529, Miscellaneous Deductions. This publication is available on the IRS Web site, IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Workshops for February 7-11, 2011
- Tuesday February 8 @ 9:30 a.m. - Finding the Hidden Job Market
- Thursday February 10 @ 4 p.m. - Computer Basics for the Very Beginner