In which instances can a job search expense be tax deductible? Does it vary between different types of occupations?
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The IRS allows for job search expenses to be deductible as long as the expenses are for a new job in your current occupation and a substantial amount of time has not passed between your old job and the job search. If you are looking for a job for the first time, the expenses will not qualify. Expenses include but are not limited to: employment and outplacement agency fees, amounts spent on preparing and mailing copies of resume, and travel expenses to and from the location (as long as the trips primary reason was for job search). These amounts are considered itemized miscellaneous expenses on schedule A and subject to the 2% adjusted gross income limitation. In other words, only the amount that exceeds 2% of your adjusted gross income will be allowed as a deduction.Leave a Comment 461 weeks ago