Taxes are something we normally do not think about until we have to pay them, but some pre-planning can give you an edge on tax deductions. Changing careers or losing one’s job is often stressful but an important thing to keep in mind when job hunting is the federal government. It allows you to deduct your job hunting expensed.
It is important to qualify for these deductions and your expenses must be spent on a search for a job in your current field. Deduction rules change so it is vital for you to keep all the receipts related to your job-hunting search.
The IRS does have some limitations on how you can deduct your job search expenses. You cannot deduct expenses if there is a “substantial break” between the end of your last job and the time you begin to look for a new one. You also cannot take these deductions if you are looking for a job for the first time. For more IRS information on job search expenses, see IRS Publication 529, called Miscellaneous Deductions.
It is important to qualify for these deductions and your expenses must be spent on a search for a job in your current field. Deduction rules change so it is vital for you to keep all the receipts related to your job-hunting search.
- You can deduct employment and placement agency fees.
- You may deduct your membership fees for professional organizations
- Union dues and expenses are deductible
- Any Education expenses incurred while unemployed are now deductible
- You can deduct the amounts you spend preparing and mailing copies of your resume. This includes the costs related to have your resume redone by a professional.
- You may deduct the cost of business attire used during your job search
- You may be able to deduct travel expenses if the trip is primarily to look for a new job. Keep track of your mileage to job interviews and if you are planning a trip try to schedule a job interview while you are there, your portion of the hotel and airfare maybe deductible.
The IRS does have some limitations on how you can deduct your job search expenses. You cannot deduct expenses if there is a “substantial break” between the end of your last job and the time you begin to look for a new one. You also cannot take these deductions if you are looking for a job for the first time. For more IRS information on job search expenses, see IRS Publication 529, called Miscellaneous Deductions.
