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Tax Deductions for Job Searches

Happy in your present career but not your present job? Will you be launching a new job search? Did you know are entitled to claim expenses related to a new job search as deductions on your federal taxes?

Job search

IRS Publication 529 lists the following rules regarding eligibility for the tax deductions:

You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. You cannot deduct these expenses if:

1. You are looking for a job in a new occupation,

2. There was a substantial break between the ending of your last job and your looking for a new one, or

3. You are looking for a job for the first time.

You can deduct fees you pay employment and outplacement agencies, the costs of preparing, copying and mailing a resume and even travel expenses related to a job search in a new area as long as your trip to the area was primarily related to seeking a new job in your present occupation.

Further information and instructions can be found in Publication 529 available from the IRS.

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