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Seven Tax Tips for Job Seekers

Postage for resumes and travel for interviews may be deductible.

by: IRS.gov | from: IRS | August 9, 2011

Editor’s note: Content provided by the Internal Revenue Service. Consult your financial or tax adviser regarding your individual situation.

Did you know that you may be able to deduct some of your job search expenses on your tax return?

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Many taxpayers spend time during the summer months updating their résumé and attending career fairs. If you are searching for a job this summer, you may be able to deduct some of your expenses on your tax return. Here are seven things the IRS wants you to know about deducting costs related to your job search.

1. To qualify for a deduction, the expenses must be spent on a job search in your current occupation. You may not deduct expenses incurred while looking for a job in a new occupation.

2. You can deduct employment and outplacement agency fees you pay while looking for a job in your present occupation.

Tax form and pencil-tax tips for the unemployed

You may be able to deduct some of your job search expenses on your tax return. — Tetra/Corbis

If your employer pays you back in a later year for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year.

3. You can deduct amounts you spend for preparing and mailing copies of your résumé to prospective employers as long as you are looking for a new job in your present occupation.

Next: Can I deduct travel expenses when looking for a new job?