Your Questions About Job Hunting Expenses

Steven asks…

are job hunting expenses subject to the 2 pct of agi to be deductible?

that is, for example, if my agi were 100,000, then is it the case that only job hunting costs over 2,000 would be tax deuctible?

Robin West answers:

This is true, you must have expenses that exceed 2% of your AGI, and only the portion that exceeds this amount is able to be used on your Sch. A, itemized deductions. Also then you must have enough itemized deductions to exceed the standard deduction for your filing status. I have attached a link to the IRS Pub 529 that describes other Miscellaneous Deductions you are able to use to help reach the 2% of AGI.

You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. You cannot deduct these expenses if:
· You are looking for a job in a new occupation,
· There was a substantial break between the ending of your last job and your looking for a new one, or
· You are looking for a job for the first time.

Laura H – H&R Block – Senior Tax Advisor 5
**This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided.

Maria asks…

Does Job hunt expenses tax deduction apply only to people who are unemployed?

Last year I did some job search for the main purpose of changing the job I was holding. In the end I did not find any new job, so I still currently hold the same job. I wonder if I can deduct expenses related to the job hunt I did.
Thanks a lot for your help.

Robin West answers:

No, you do not have to be unemployed to deduct job search costs. You must be seeking employment in the same field though, so if you were a laborer seeking employment in the IT field you could not deduct the costs.

Sandra asks…

What documents are needed to to justify job hunt expenses for taxes filing?

Last year I traveled out of town a couple of times to look for a new job. I deposited my resumes in few companies. I also talked and passed my resume to few managers during lunch time at the cafetariat. However I did not keep a valid proof of those meetings. However, I have gas receipts. What other documents do I need to support my job search expenses claim? Additionally, how can I proove that I was looking for job in my profession? Does listing the name of the companies a good enough?

Robin West answers:

See IRS Publication 529.

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One Response to Your Questions About Job Hunting Expenses

  1. leslie says:

    Thanks for the examples about tax deductions. There always seems to be confusion around it. However, when I bring it up in my workshops, most people haven’t heard of the opportunity. Be happy to have you comment on any of my other blogs as well.

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