Sometimes it might feel like all the money you spend trying to find a job just blows away in the wind. But that really is not true if your money was being invested in your future career because that investment will bring a return eventually. Until then, you might want to check out what the IRS says about deductions for individuals: under “Job Search Expenses,” there are some that can help. Of course, there are restrictions, and you will have to do your homework to see if you qualify. But think about it, any deductions are helpful! Am I right?
The IRS does not allow deductions for first time job seekers, those who have been long unemployed, or those switching career fields. You have to be looking for a new job in your current occupation. For example, if you have been a carpenter, there will be no deductions for your search to be a pastry chef, but there might be if you are looking for better-paying carpentry jobs. Definitely keep that in mind and ask yourself, “Am I progressing in my field or changing occupations?” because that could help you in your deduction search from the very beginning.
If you qualify, you can deduct these things:
– Employment and outplacement agency fees – unless your employer pays you back or pays the agency you are eligible for this reimbursement.
– Resume costs – if you are looking for a new job in your present occupation, you can deduct the amounts spent on preparing and distribution of your resume. Keep this in mind and consider hiring a professional to help you perfect everything.
– Travel expenses – this gets tricky because it depends on the amount of time your trip is devoted to your job search, but there will be some deductions in most cases. Most importantly, keep your receipts… even if you think that they will not come in handy. You never know!
If you are not in the habit of keeping receipts for tax deduction purposes, you lose the chance to do it. Careful record keeping of your job search and employment expenses can keep some of that money from just blowing away in the wind and who ever wants that to happen. Itemized deductions need to be proven by you and need to be accurate for the current tax rules, so talking to an expert about your individual return is a good idea.
Source by Erin Kennedy