IRS Tax Tips for Job Seekers

For those who are looking to find a new job in their chosen occupation, the IRS has some tax tips that will enable these individuals to deduct costs in their tax return.

1. In order to qualify for a deduction, the individual must be searching for a job in his current occupation. Expenses may not be deducted while looking for a job in a new profession.

2. An individual may deduct employment and outplacement agency fees incurred during a job search in a current profession. If the employer pays the individual back in a later year, the individual must include that reimbursement in his gross income, up to the amount of the tax benefit in the earlier year.

3. The cost of preparing and emailing resumes can also deducted if the prospective employer that is receiving the documents is in the individual’s current profession.

4. If the individual travels to another area to look for a new job in his current profession, those expenses may be deductible.

5. Job expenses are not deductible of there is a substantial amount of time between the end of the last job and the beginning of the search for another job.

6. Individuals looking for a job for the first time may not deduct job search expenses.

7. The amount of job search expenses that are deductible is limited.

For more information, and to be assured that what you are deducting as appropriate, please contact your experienced tax professional.


Segal, Cohen & Landis
9100 Wilshire Blvd. Ste. 601E
Beverly Hills, CA 90212
(310) 285-3999

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