Income tax filing deadlines are looming. With less than a month before the regular filing cutoff date, don’t forget to check out the law for job search deductibles and to include them when you file.
What’s deductible and what’s not?
Basically, if you were searching for a job in your same field of expertise, job search expenses, such as resume preparation fees, job search-related travel, employment agency fees, phone charges and mailing costs qualify for deduction.
But there are hitches in the rules for deducting job search costs. For instance, expenses must be more than 2% of your adjusted gross income. If you’re adjusted gross income is $80,000, your job search expenses would have to be more than $1,600 to be eligible for deduction.
College graduates are often at a disadvantage because they have yet to establish employment in a specific field. As a result, they do not qualify for the tax write-off if they are looking for a job for the first time.
You must keep a record of your job search expenses with receipts to prove what was spent in case of an audit and you have to complete a Schedule A when filing if you are deducting job search expenses.
Learn more about job search tax deduction by visiting the IRS website for tax filing guidelines.
Fridayd’s job search solution qualifies for tax deductions under the current rules for employment agencies and outplacement services – if you are searching for a job in your existing occupation.