If you are looking for a new job, you may incur some expenses along the way that may
be deductible. Here are some key tax facts you should know:
Your expenses must be for a job search in your
current line of work, not for a new occupation. However, temporarily working in
another field while you are job searching won't cause your job search expenses to be
nondeductible. Also, expenses to look for full-time work in your existing occupation
while you're working part-time or sporadically in the same line of work should be
You can deduct the cost of preparing and mailing your
If you drive in connection with your search, you
can deduct the IRS business mileage allowance. If you travel to look for a new job,
you may be able to deduct the cost of the travel to and from the area if the trip is
made mainly to look for a new job. If the trip is not mainly to look for a new job,
some of your expenses may still be deductible if they are directly related to your
search, such as the cost of transportation to and from an interview.
You can deduct some job placement agency fees you
pay to look for a job.
You can't deduct job search expenses if you're looking
for a job for the first time.
You can't deduct expenses that are reimbursed by
a prospective employer or a future or past employer.
You usually deduct your job search expenses on
Schedule A, "Itemized Deductions." You'll claim them as a miscellaneous deduction.
You can deduct the total miscellaneous deductions that are more than 2% of your
adjusted gross income.
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opinions on specific facts or matters, and, accordingly, assume no liability
whatsoever in connection with its use. The information contained in this newsletter
was not intended or written to be used and cannot be used for the purpose of (1)
avoiding tax-related penalties prescribed by the Internal Revenue Code or (2)
promoting or marketing any tax-related matter addressed herein. © 2015