Blog Post: Tax Considerations for Job Hunters

Searching for a new job has its ups and downs, but there may be one silver lining. Expenses incurred searching for a new job in your same line of work MAY BE tax deductible. I emphasize that they may be tax deductible because the tax benefit is based on the amount of the expenses, as well as your adjustable gross income. Please consult a tax adviser to determine whether you may be eligible. If you are eligible, you may be able to get a deduction only for those job-search expenses that exceed 2% of your adjusted gross Income. For example, if your adjusted gross income is $30,000 and you have $1,000 in job-search expenses, you could only deduct $400. The first $600 (or 2%) of your income is not deductible. Again, consult a tax adviser to determine whether you may be eligible.

If you think you may be eligible, keep your job search receipts for resume printing fees and travel expenses related to job searches. Also, fees paid to resume writers and employment agencies may be tax deductible. When your tax person does your taxes, have the receipts handy as they may provide some needed tax relief.

A. L. BEAN & Company

Consulting, Tax & Accounting

www.albeanco.com