Mel Schnapper Associates, Inc., 2411 West Fitch Avenue, Chicago, Illinois 60645, Tel: 773-973-0791
Deducting Job Hunting Expenses
You may be able to deduct certain expenses at income tax time that you incur in looking for a new job in your present occupation, even if you do not get a new job. You may not deduct these expenses if you are looking for a job in a new profession, even if you get the job.
If you are unemployed, the kind of work you did for your past employer is your occupation. If there has been a long break between your past job and looking for a new one, you may not deduct your expenses.
You may not deduct your expenses if you are looking for employment for the first time, even if you get the job.
Travel and transportation expenses incurred by an individual in seeking new employment in the same trade or business may be deducted from gross income to arrive at adjusted gross income.
If you travel to find a new job in the same line of work, such as an interview in a distant city, you may deduct travel expenses, including living costs (i.e., meals and lodging). However, if the purpose of the trip is primarily personal in nature, only the actual expenses of an employment search at the destination are deductible.
If you pay an employment agency fee and after a certain period of time are reimbursed by your employer, you must report the reimbursement as taxable income. This additional income may be offset by deducting the fee as an itemized deduction.
The following amounts are deductible as itemized deductions:
*expenses of a resume *typing *printing *stationery *postage *telephone expense *telephone answering machine *books about job hunting *job hunting counseling:
"Job Hunting Skills That Work" Workshop
"Job Hunting Counseling Contract"
"Job Hunting Support Group"
You must be actively seeking new employment in the same trade or business in order to deduct any of the above expenses. Also, you must keep accurate records to substantiate these expenses (i.e., receipts, diary of transportation expenses or mileage, letters from prospective employers).
If you have any questions, consult your tax accountant.
