Deducting Job Search Expenses
Joblessness isn’t just for music majors anymore; useful people are feeling the pinch too. And if you found yourself among the unemployed during 2011, you may be wondering if there’s any tax benefitto your job search.
Well, Kerry Hannon over at Forbes has you covered, offering helpful tips for deducting expenses incurred to find new employment. Just note, in general, these expenses are only useful if you itemize your deductions, and even then, only if the total of your job-search costs exceed 2% of your “adjusted gross income,” and you are not subject to the alternative minimum tax.
Some highlights:
These tax deductions apply to job searching in your current profession. If you’re switching careers, they’re off-limits. And first-time job seekers are shut out of any of the deductions.Moreover, the IRS does not permit deductions after a “substantial break” between your last job and your current job. It doesn’t detail what it means by a “substantial break,” however.
Outplacement fees. If you land a new job through an outplacement agency’s efforts, you can deduct the fees associated with using their services. Career coaching fees can usually be deducted too.
Resumes. Resume preparation fees, paper, inkjet cartridges and printing costs for your resume and postage to send it on its way are deductible costs.
