Some job-hunt expenses deductible

   

I am sure with the downturn in the economy that a lot of people would like to have this question answered.  I was unemployed for almost six months this year.  What expenses incurred in my job search are deductible? H.S via e-mail..

 

You can deduct certain expenses you incur with respect to a job search as long as this isn't your first job and as long as you are looking for a job in the same occupation as your last job. Also, there can't have been a substantial break in time since you last worked, but your six-month hiatus won't prevent you from deducting these expenses.  

  

You must be able to itemize deductions on Schedule A of your tax return in order to claim a deduction for these expenses. Even if you itemize, you may not get the full benefit of this deduction. Miscellaneous deductions, which include job-search expenses, must exceed 2% of your adjusted gross income before the IRS lets you use the expenses to reduce the income on which you pay tax.  

  

If your employer pays you back for any of your job-hunting expenses, you cannot take the deduction. If you took a deduction and your employer reimburses you in a later year, you must include some of the reimbursement in your income. The amount you include in income is the amount of tax savings you received from the deduction.  

  

You can deduct resume costs such as typing, printing, and postage, and other stationary expenses such as paper and envelopes.  

  

You can deduct travel costs including mileage expense at 34.5 cents per mile, airfare, train, bus, and so on if the expenses are used for trips to interviews, career counselors, and job research facilities such as libraries.  

  

You can deduct the cost of meals you eat if you travel overnight for job interviews. Other expenses relating to your travel, such as taxis, parking, and tips are also deductible.  

  

You can also deduct employment agency fees, the cost of publications that list job offerings in your profession, books that contain job searching tips, and long distance calls.  

  

If you buy a new suit of clothes so you'll look sharp at your interview, you're out of luck when it comes to claiming a deduction. The costs have to be specifically and exclusively related to searching for a new job in order to be deductible.  

  

Meanwhile, professional resume writers and career counselors have banded together to volunteer their services to people who have lost their jobs as an immediate result of the recent national tragedy.  

  

People who have been displaced in their work lives as a direct result of the terrorist attacks are encouraged to go to http://www.volunteersforcareers.org on the Internet for assistance in resume writing and career counseling.  

  

Members of the Professional Resume Writing and Research Association, the Career Masters Institute, and the National Resume Writers' Association have joined in the effort to help people who are being laid off as companies find their way through the current crisis.  

  

Career experts who would like to volunteer their time and expertise are also encouraged to go to the Volunteers for Careers web site and offer their assistance. Companies supporting this effort may download a banner from Volunteers for Careers that can be placed on their own Web site, directing people in need of assistance to the Careers web site.  

  

  

   
copyright ©  2001   Gail Perry - Fun with Taxes