Job Searching and Your Taxes

Did you know that searching for a new job can be tax deductible? The costs of your job hunt may lessen your tax burden if you are looking for a new position in your present occupation, itemize deductions when you file, and have reasonable expenses related to your job search that exceed 2% of your adjusted gross income (AGI).

Qualified job search expenses include professional résumé services, mailing or faxing costs, employment agency fees, phone calls, and certain travel expenses related solely to a job search in your field. Moving costs may be deductible if your new job in the same field is more than 50 miles from your former residence. 

Continuing Education expenses, such as tuition, books, and lab fees may also be deductible, within limitations. These deductions do not apply for first-time jobseekers, career changers, or the long-term unemployed. As with all deductions, it is important to save your receipts, emails, and phone logs, as well as consult with a tax professional.

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