Can You Deduct Job Search Expenses?
- It is in the best interest of the U.S. government if every person who wants a job has one. The more people who have jobs, the more tax revenue the IRS can collect; offering tax deductions on job search expenses provides financial incentive for unemployed workers to continue looking for work. According to the IRS, you can deduct certain job search expenses if you are looking for work in your current occupation even if you don't land a job. You cannot take job search deductions if you are looking for work in a new occupation, if you are looking for a job for the first time or if there has been a significant break between the ending of your previous job and your search for a new one.
- Employment agencies help connect workers with employers. Employment agencies sometimes charge you fees for their services; according to the IRS, these fees are tax-deductible, but if an employer pays you back for agency fees at a later time, you must include the amount of the refund in your gross income when filing your tax return. The IRS also states that if your employer pays fees directly to the employment agency and you have no responsibility for them, you do not have to include them in your gross income.
- Resumes are essential documents in a job search that contain education information, employment history and other relevant information that recruiters use to determine which candidates to call for interviews. According to the IRS, the cost of preparing and sending resumes to prospective employers for new positions is tax-deductible.
- Looking for a job can involve transportation costs such as fuel costs, airfare and public transit costs. The IRS says that the travel expenses of a trip you take primarily to search for a new job in your current occupation are tax-deductible. According to the IRS, if you use your vehicle to travel while searching for a job, you can use the standard mileage rate to figure your car expenses. That rate was equal to 50 cents per mile in 2010.
