Are Job-Search Expenses Tax Deductible?
Posted By Amanda Collins on February 4, 2010
Excerpted from a recent e-mail from Mike O’Brien at Climber.com
Over the last few months I have gotten this question a few times, so I thought it would be a good time to address it. The good news is in most cases yes, so keep all your receipts!
According to H&R Block, your job search expenses are deductible if :
- You look for a job in the same field.
- You are looking for a job at a similar level to your most recent job.
- The total of all of your miscellaneous itemized deductions is more than 2% of your over Adjusted Gross Income.
I asked Aaron Garabedian from The Garabedian Group, an accounting and consulting firm in Fresno, CA, to explain this in plain English, “For instance, if have been out of work for six months and your total adjusted gross income for the year is $25,000, you would need your total miscellaneous itemized deductions to be more than $500. This is the total of all miscellaneous deductions not just job-search related; some other miscellaneous, itemized deductions are professional or union dues, work tools, protective work clothing, and tax preparation fees.”
Here are the items that you can generally deduct:
- Employment agency fees (like Climber.com http://www.climber.com/url/t/x0ZGE63789654): If your fees are repaid by an employer in a later tax year, you will have to declare the reimbursement as income.
- Résumé Preparation / Marketing: Printing, postage, advertising, and other fees associated with creation and distribution of your résumé.
- Travel: Unreimbursed airfare, automobile mileage, meals, and lodging are all covered.
Tax Tools and Services:
- H&R Block – Helpful online tax preparation: http://www.climber.com/url/JgrjA63316619
- TurboTax Online – The faster way to file online: http://www.climber.com/url/9hla263316997
- No-Cost Taxes Online – No-cost and low-cost tax filing: http://www.climber.com/url/xaJxi63317156
- Income Tax Calculator – Calculate your income tax online: http://www.climber.com/url/WLw4z63317250