If you are in the market for a new job, then you may be eligible for some tax credits.
What kind of items are considered job hunting expenses?
- Staffing agencies: If you pay for a staffing agency to help you find a job
- Stationary & Postage: The cost of sending out application materials
- Travel: If you must travel for an interview or to search for a position, then the expenses may be deductible
- Continuing Education: If you take a class or enroll in a program to further your skills in your field, the cost may be tax deductible.
- Learning how to market yourself: Takeing courses or enrolling in programs that help you in your job hunt also count.
- Job-hunting marketing expenses: If you have to make phone calls or place wanted ads, or even if you pay for business cards, this may be deducted.
Does your job search meet the deduction guidelines? Here’s some questions to ask yourself.
Are you staying on the same career path?
Job seekers that stay on the same career path are more likely to be able to deduct these expenses. So if you are a teacher and you find a new teaching job, you should be OK.
Have you been actively searching for a job?
If you have waited to long to search for a job, the IRS is less likely to consider you for deductions. For example, if you took a chunk of time off to go back to school you may not be considered.
Is this your first job?
If this is your first time looking for a job in your desired career path, then you won’t be able to have these expenses paid. However, if you held a full-time job in your field while still in school, you might be eligible.
How much did you spend?
Job hunting expenses must top 2 percent of your adjusted gross income.