Are you looking for a job this summer?
If so, you know that the costs of job hunting, whether it’s for professional coaching, resume services, or just subscriptions to job hunting services; can get pricey.
Travel to a conference, interview, or job fair? Those are costs too.
This can all add up, and even be a little disheartening, if you are currently out of work and trying to get hired for a new job during a period of unemployment.
The good news is that you might be able to deduct some of your summer job search expenses on your taxes.
What Can You Deduct for Your Job Hunt?
For the most part, any expenses related to your job search are eligible.
The IRS will allow you to deduct the cost of coaching, including interview coaching. You can also deduct the cost of resume preparation services and other services related to making you more marketable.
If you send out application materials by mail, you can keep track of what you spend on mailing supplies and on postage, and deduct those expenses.
It’s also possible for you to deduct your travel expenses. If you have to pay to stay in a hotel and/or if you have to drive your car to an interview, you can deduct those expenses as well.
It’s important to keep your receipts. You want to make sure that you keep everything related to your job hunt organized so that you can document your expenses.
It can also help to keep notes about which job the expenses were for, and what you accomplished. Good documentation is always a good idea — no matter the deduction.
Do You Qualify for a Job Hunt Tax Deduction?
You can’t just claim expenses for any job search.
In order to deduct your expenses, you have to be looking for a job in your current field, and it can’t be your first job out of school.
So if you have just graduated and are looking for your first job, you can’t deduct the expenses. You also can’t deduct the expenses if you are trying to change careers.
You need to be looking for a job in the same career area if you want to deduct the expenses.