Deducting Expenses from Job Hunting

When you seek out a new in the same occupation, you may be able to deduct some of the costs you incur through the hunting process. If you want to know how to get a little more back in a time when you're trying to save, you should be aware of the following facts about job hunting .

What You Can Deduct:

  • Same Field: You have to seek employment in the same line of work you currently work in f you want to claim a for job search . You can't deduct costs associated with a new occupation.
  • Résumé Services: If you use third party services to prepare or mail your résumé, you can deduct the expense.
  • : if your job search requires you to travel, there's a chance you will be able to deduct the expenses. The trip has to be a main purpose in order to deduct the cost of traveling to and from job search location. If not, you may be able to claim a portion of the expense.
  • Third Party Placement: Costs you paid to a placement agency to help you find a job may be deductible.

What You Can't Deduct:

  • First Time Employment: Similar to looking for a new line of work, you can't deduct expenses if you are seeking your first job.
  • Employment Gap: If it's been awhile since your last job, and the time you start looking for a new one, you won't be able to deduct the job search expenses.
  • Reimbursement: Any costs that have been reimbursed by another person or party are not deductible.

To deduct job search expenses, you'll need to file , , in which they are classified as a miscellaneous deduction. Any miscellaneous deductions must be greater than two percent of your .