Costs associated with looking for a new job may be deductible. Below, is a list of what you need to know:
- The costs must be related to searching for a job in the same occupation as your pervious job
- Costs associated with preparing and mailing resumes, as well as, outplacement agency fees are deductible
- Travel expenses and mileage may also be deductible if the time was primarily spent searching for employment
- To claim job search expenses, list them as miscellaneous itemized deductions in Schedule A
What Doesn’t Qualify?
- If there was a large time lapse between the end of your last job and the start of your search, then expenses are not deductible
- Expenses related to those pursing their first job are not deductible
Remember, to keep receipts and any other proof of searching for a job. Be sure to make notes of date, time, mileage, and a description of what you were doing while traveling if you plan to deduct travel expenses. If you have questions regarding whether your expenses qualify for this deduction, please contact an H&S representative.