Tax Breaks for Job Hunting Expenses

You might be able to get a deduction on some costs

irsIf you’re looking for a new job this summer, know that you might be able to deduct some of the job hunting costs. The Internal Revenue Service has some pointers for job seekers.

You must be looking for a job in the same industry. Be aware that in order for expenses to qualify for a tax deduction, they must be for a job within the same line of work as your current job. If you’re looking for a job in a completely different field, your expenses won’t be eligible.

Help with résumé costs is within reach. Paying for someone to help you with your  résumé can be expensive. Luckily, costs related to preparing and mailing your résumé are tax deductible.

Travel costs might be covered. The costs of traveling back and forth to get to job interviews can also add up. However, you might be able to deduct costs related to your trips.

Exceptions

Know that there are some exceptions to the list of job-related expenses that can be deducted. If you are conducting a job search for your very first job, deductions cannot be applied. In addition, expenses are not deductible if you took a very long break in between job searches.

For more information, see IRS Publication 529, Miscellaneous Deductions.

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