IRS’ Top 7 Tax Tips for Job Seekers

If you have been feeling more confident about the job market, or less confident about a current employer, or you’re just plain out of work, there are ways to minimize the costs involved in finding a job. Job hunting can be expensive, particularly if relocation is in the picture. Still, there may be some good news about the money you spend in searching for a new job—from, of all places, the IRS.

Some of the expenses involved in finding a new job are deductible, depending on the circumstances. There are limits, of course, and rules to be followed, but the search for a new employer can pay off in more ways than one if you pay attention to these 7 Tips from the friendly folks at the Internal Revenue Service. 7)  NO CHANGING CAREERS

If you like what you’re doing and want to stick with that occupation in a new company, you’re in luck. No fair leaping from doctor to lawyer to Indian chief. Launching yourself along a completely new career path is not deductible; following the road you’ve been on is. 6)  WRITING OFF FEES

Have to resort to paying an employment or outplacement agency in the course of your job search? As long as you’re sticking with the profession you’re already in, you can write those off.

If your new employer reimburses you later on, say in some future year, you’ll have to own up to it on that year’s tax return, “up to the amount of your tax benefit in the earlier year.” 5)  THE DEDUCTION’S IN THE MAIL

… And in the cost of preparation. All those resumes you printed out, the envelopes you mailed them in, and the postage that carried them on their way are deductible. The usual caveat applies: same occupation, deduction. Different, not. 4)   BUSINESS TRIP

If you travel to find a new job in your present occupation, the determining factor is how much time was spent on the actual job search and how much was spent checking out the tourist attractions in the area or visiting Aunt Sadie. If you only spend an evening taking her to dinner or a single afternoon whitewater rafting, but devote several days to scoping out potential employers, you can write off travel to and from the site. 3)   INTERRUPTION IN SERVICE