Job search costs are delicate as related to tax deductions, and I suggest consulting your accountant to verify the following information which recently appeared in The Career News, March 9, 2009, V9Issue10.  They state “The basic rule - whether you’re laid off or simply want a change - is that job hunting expenses are deductible on your federal return if you itemize deductions. People who take the standard deduction can’t claim these expenses.”

Qualifying expenses in a job search are deductible even if no position is found. They note that deductible items include:

• Resumes
• Phone calls
• Local transportation to an interview
• Legal advice, and fees at an employment agency or counselor.
• Unreimbursed out-of-town travel, including meals and lodging (if the trip is primarily to line up a job).

Additionally, they state that “Job hunting isn’t deductible when looking for your first job, returning to work after a long absence, or for work in a new field. The more similar an old and new job are, the safer the deductions. Additionally, a drawback is that job hunting falls into the catchall “miscellaneous” category of deductions. Under the tax code, only the portion of combined miscellaneous expenses that exceeds 2 percent of your adjusted gross income is generally deductible.”

By JoNel Mundt, PhD.

Category: Career · Unemployment