What You Need to Know When Deducting Job-Hunt Expenses

Last week the IRS released information pertaining to deducting job search costs, including a list of nine "key tax facts" on the subject.

Perhaps the most important item on the list states that all job-search expenses must be for a position in the same occupation. This means that "[taxpayers] can't deduct expenses for a job search in a new occupation." If the job search is for something in your current field, then the taxpayer can likely deduct for resume costs, travel expenses, and fees from placement agencies.

It's important to note that first-time job searches and long-break job searches do not qualify for this deduction and anyone receiving advanced payment of the Premium Tax Credit (PTC) should report employment changes that affect "income or eligibility for other coverage" to the Health Insurance Marketplace.

For more extensive information, click here.

Source: Internal Revenue Service