Job-Hunting Trips

• You must itemize your deductions in order to take the IRS allowance for job-search travel expenses, and you may deduct job-related travel expenses only to the extent that all of your job-search deductions exceed 2 percent of your adjusted gross income. You may not deduct job-related travel expenses if you are looking for a job in a new occupation, looking for your first job out of school, or if there has been a substantial break between the ending of your last job and your looking for a new one.
  
  You may deduct automobile mileage using the actual expense method of computing fuel and oil costs or by using the standard mileage rate, which is 50 cents per mile for tax year 2010, 51 cents per mile for the first half of tax year 2011 and 55.5 cents per mile for the second half of 2011. If you travel by bus, train or plane, you may deduct the fare. You may also deduct the cost of meals, lodging, public transportation, parking, tips, laundry and business calls.
  
  

Other Deductible Expenses

• If you itemize your deductions, you may also deduct the cost of employment agency fees, the cost of preparing and mailing resumes and other reasonable and necessary job-hunting expenses such as the cost of computer rental or public stenographer's fees. These items are deductible only to the extent that they, along with your other itemized job search deductions, exceed 2 percent of your adjusted gross income.
  
  

Moving Expenses

• If you find a job and must relocate as a result, you may deduct certain moving expenses. The moving expenses deduction is not an itemized deduction, so you can use it even if you take the standard deduction on your tax return. According to the IRS, you may deduct job-related moving expenses from your taxable income "...if your new main job location is at least 50 miles farther from your former home than your old main job location was from your former home." For example, if your old job location was seven miles from your old home, your new job location must be at least 57 miles from your old home.
  
  You must work at least 39 weeks full-time during the 12 months following your move. If you don't, you will have to file an amended tax return. You may deduct automobile mileage, transportation and storage of your belongings, as well as lodging during your trip. For tax year 2010, the standard mileage rate applicable to moving expenses was 16.5 cents. For tax year 2011, it was 19 cents per mile for the first six months of the year and 23.5 cents per mile for the last six months.
  
  

Filing Requirements

• To claim job-related travel expenses, file Form 2106, the same form used by employees to deduct job-related business expenses, and itemize your expenses on Schedule A. To deduct moving expenses, file Form 3903. These forms must be submitted together with your usual Form 1040 tax return.