If you searched for a job during 2013, you may be eligible for some tax deductions that could save you a significant amount of money on your taxes. Looking for a job requires a considerable amount of money and effort, especially if you have been searching for months, but many of these expenses may be tax deductible for you if you qualify under the rules. Grab your receipts and see which of these job hunting deductions you can use to save some cash when filing your taxes.
Make Sure You Qualify
If you itemize your deductions, there may be a number of job search related expenses you can write off on your taxes, but only if the job that you are seeking is in the same line of work that you were employed in when you lost your job. You do not qualify for the tax deductions if you were searching for a job in a new career field or if there was a substantial break between when you lost your job and when you started searching for a new one in the same field. Make sure that you have the receipts for the deductions that you intend to claim in case they are needed for verification.
Job Coaching Services
If you paid for any job coaching services during your job search, you may be able to deduct the costs from your taxes. Expenses related to job coaching services, such as signing up for career coaching, career seminars, or an employment agency that charged you outplacement fees, are tax deductible for the tax year in which they were incurred. Costs associated with preparing, printing and mailing your resume are also tax deductible.
The expenses you incurred traveling during your job search may also be tax deductible. If your job search occurred primarily in the town that you live in, you may be able to deduct a mileage amount for your travel and any parking fees incurred during your search. If your job search took you to multiple towns or states, you may also be able to deduct the cost of car rentals, airfare, and hotel expenses from your tax liability. Receipts will be needed to ensure that you are deducting the correct amounts and a ledger can be used to write down what you did and how the expenditure contributed to your job hunt.
Do you have questions about what types of job search related expenses are tax deductible? Be sure to leave me a comment.