How to Deduct Job Hunting Expenses on Your Tax Return - information from Brookwood Tax Service

This page last updated on
February 26, 2006

Job Hunting Expenses Can Cut Your Taxes
Are Your Costs Deductible?

It's never easy finding a new job. Whether you have been downsized, pushed out, or just needed a change of employer, your expenses for looking for the ideal job in your present career field just may be deductible.

The first thing to remember is that you must be able to itemize your deductions before you are allowed any deduction at all. Even then, your job-hunting expenses, along with other miscellaneous deductions, must exceed 2% of your adjusted gross income. This fact alone prevents many people from saving documentation that substantiates these types of expenses. Don't let this stop you from saving your receipts anyway. You just may be surprised at how fast they add up. Even if your job search is unsuccessful, your expenses may be deductible.

The second thing to remember is that not all job-hunting expenses are allowed. For example, expenses for looking for a new job in a different occupation than the one you held previously are not deductible, nor are expenses for looking for your first job in any occupation.

Here is a quick list of some deductible job-hunting expenses:

	Employment agency fees.
	Costs for a résumé, including amounts you spend for typing, printing, and mailing.

Costs of assembling a portfolio of prior work.

Career counseling costs.

Cost of placing a "job wanted" advertisement or posting a resume on a job web site.

Newspapers and business publications purchased to scan help-wanted ad.

Fees paid to access online help-wanted listings.

Travel expenses you pay if the trip is primarily to look for a job. Travel expenses include costs for transportation, meals, and lodging.

As with any business expense, if you are reimbursed for any of your costs, you are not entitled to a deduction.

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Job Hunting Expenses Can Cut Your Taxes Are Your Costs Deductible?

Job Hunting Expenses Can Cut Your Taxes
Are Your Costs Deductible?