Thursday 14th of December 2017 8:05:01 AM

  • Claim Job Hunting Expenses

    Tuesday 16th of April 2013 12:14:18 PM

    You have lost your job and all you do now is job hunt! Well, imagine this, The IRS will allow you to claim your job-hunting related expenses on your next tax return! Job hunting write offs are one of the amazing yet most overlooked tax deductions.  The down side is that not all US tax payers qualify for this deduction, but, the IRS can be generous in other ways. For example, if you did not score the job you wanted in 2013 that doesn’t mean that you do not qualify. Just the fact that you looked for a job qualifies you for the deduction!

    Here is a quick way to figure out if you qualify for this deduction, first figure out your expenses versus your total gross income. If your expenses are less than 2% of your total gross income then yes you do qualify for the deduction.  Sadly that same formula can be the reason you disqualify if your last job paid you a large salary. Also if you take a “substantial break” prior to looking for employment then the IRS may disqualify you for that as well. Also, you also can not go into a different career, the IRS frowns upon that and will disqualify you from claiming your job hunting expenses.

    While you are job hunting if you should pay to receive employment services like job placement services or employment counseling, you can deduct these expenses as well. But the buck doesn’t stop there. Services like resume preparation or if you travel to support your job hunting the fees associated can also be deducted.

    For more information on this matter please visit the IRS website.

Leave a comment