What are the Tax
benefits of Job Seekers?
know that you may be able to deduct some of your job search expenses
on your tax return?
taxpayers spend time during the summer months updating their résumé
and attending career fairs. If you are searching for a job this
summer, you may be able to deduct some of your expenses on your tax
return. Here are six things the IRS wants you to know about
deducting costs related to your job search.
1. To qualify for a deduction, the expenses must be spent on a job
search in your current occupation. You may not deduct expenses
incurred while looking for a job in a new occupation.
2. You can deduct
employment and outplacement agency fees you pay while looking for a
job in your present occupation. If your employer pays you back in a
later year for employment agency fees, you must include the amount
you receive in your gross income up to the amount of your tax
benefit in the earlier year.
3. You can deduct
amounts you spend for preparing and mailing copies of your résumé to
prospective employers as long as you are looking for a new job in
your present occupation.
4. If you travel to an
area to look for a new job in your present occupation, you may be
able to deduct travel expenses to and from the area. You can only
deduct the travel expenses if the trip is primarily to look for a
new job. The amount of time you spend on personal activity compared
to the amount of time you spend looking for work is important in
determining whether the trip is primarily personal or is primarily
to look for a new job.
5. You cannot deduct
job search expenses if there was a substantial break between the end
of your last job and the time you begin looking for a new one.
6. You cannot deduct
job search expenses if you are looking for a job for the first time.
information about job search expenses, see IRS Publication 529,
Miscellaneous Deductions. This publication is available on IRS.gov or
by calling 800-TAX-FORM (800-829-3676).