Summer marks a time for change…whether it’s a new addition to your family, buying your dream home, or your decision to pursue a new career.
With vacations behind us and everyone settling into “back to school” mode, the job search is back on.
Searching for another job is a full-time job in itself and requires much time, energy, and research. It can be tough for anyone! Luckily for you and others who may be seeking employment, there’s good news….a deduction that may alleviate the costs of your job hunt.
Use the following guidelines to determine whether your search expenses are tax deductible.
- If you are looking for your first job, your job search expenses are not deductible.
- You must restrict your job search to occupations in the same line of work, meaning that you cannot completely switch careers. Any expense that is assumed or reimbursed by your employer is not deductible.
- Have you been looking for work through an employment agency? Those fees are deductible!
- Finding the perfect job may require traveling to another city. Your travel and transportation costs for trips taken for the sole purpose of finding a job may be tax deductible.
- The cost of envelopes, resume paper, and postage can really add up. Don’t forget to deduct those costs!
- Being proactive in looking for a job after the end of your last job works in your favor. If you wait too long to begin your job search, you risk losing the ability to deduct your expenses.
- Job search expenses are classified as a miscellaneous itemized deduction and can only be deducted if the expenses exceed two percent of your adjusted gross income.
More detailed information about what expenses qualify for this deduction can be found in Publication 529 on the IRS website.
Good luck in your job search! Getting more money in your pockets is possible…visit your local Liberty Tax® to see if your expenses are deductible.